ACN surges, gaining $19.52 (12.86%) within a single day
Accenture plc Class A (ACN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ACN ended Thursday at 171.34 surging $19.52 (12.86%), significantly outperforming the S&P 500 (6.24%). This is the biggest single-day gain ever recorded for the stock. The last time we've seen such an unusually strong single-day gain on March 13th, ACN actually lost -8.39% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 159.69, Accenture plc confirmed its breakout through the previous session high after trading up to $11.91 above it intraday.
Daily Candlestick Chart (ACN as at Mar 26, 2020):
Thursday's trading range has been $21.60 (14.08%), that's far above the last trading month's daily average range of $12.12. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ACN.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close above the 20-day moving average at 165.94 for the first time since February 21st. Prices are trading close to the key technical resistance level at 175.30 (R1). The share found buyers again today around 150.00 for the third trading day in a row after having found demand at 148.11 in the prior session and at 149.49 two days ago.
Although ACN is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 177.80 where further buy stops could get activated.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Accenture plc. Out of 267 times, ACN closed higher 55.81% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.67% with an average market move of 0.46%.