ACN still stuck within tight trading range
Accenture plc Class A (ACN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
ACN finished the month 4.69% higher at 224.78 after gaining $0.80 (0.36%) today on low volume, slightly underperforming the S&P 500 (0.77%). Today's close at 224.78 marks the highest recorded closing price ever. Trading up to $2.99 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 223.99, the market confirmed its breakout through the previous session high after trading up to $0.96 above it intraday.
Daily Candlestick Chart (ACN as at Jul 31, 2020):
Friday's trading range has been $4.05 (1.81%), that's slightly above the last trading month's daily average range of $3.78. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly 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 219.78 and 225.40 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on May 29th, ACN actually gained 0.87% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 225.40 where further buy stops could get triggered. With prices trading close to this year's high at 225.74, upside momentum might accelerate should Accenture plc be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Accenture plc. Out of 476 times, ACN closed higher 57.14% 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 60.92% with an average market move of 0.71%.