ACN still stuck within tight trading range
Accenture plc Class A (ACN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ACN ended the week 5.35% higher at 193.71 after edging higher $0.21 (0.11%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ACN as at May 22, 2020):
Friday's trading range has been $3.76 (1.94%), that's slightly below the last trading month's daily average range of $4.36. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ACN. Prices continued to consolidate within a tight trading range between 188.11 and 195.67 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Spinning Top and the Hanging Man.
Prices are trading close to the key technical resistance level at 195.67 (R1). Accenture plc ran into sellers again today around 194.89 for the third trading day in a row after having found sellers at 195.52 in the previous session and at 195.67 two days ago. The last time this happened on May 12th, ACN lost -2.54% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 195.67 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Accenture plc. Out of 544 times, ACN closed higher 56.80% 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 61.03% with an average market move of 0.80%.