ACN finds buyers again around 239.17
Accenture plc Class A (ACN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ACN ended Wednesday at 239.42 losing $0.78 (-0.32%), but still slightly outperforming the S&P 500 (-0.46%). Trading $3.44 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. 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 Sep 16, 2020):
Wednesday's trading range has been $5.73 (2.37%), that's slightly above the last trading month's daily average range of $4.90. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ACN.
Notwithstanding a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle.
After trading down to 239.17 earlier during the day, the share bounced off the key technical support level at 239.36 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move lower than 239.00 in the prior session, Accenture plc found buyers again around the same price level today at 239.17. The last time this happened on August 28th, ACN actually lost -1.26% on the following trading day.
Although ACN is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 247.82, upside momentum might speed up should the stock 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 Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Accenture plc. Out of 399 times, ACN closed higher 61.40% 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 60.65% with an average market move of 0.76%.