ADS pushes through Thursday's high
Alliance Data Systems Corporation (ADS) Technical Analysis Report for Apr 12, 2019 | by Techniquant Editorial Team
ADS ended the week 2.16% higher at 180.93 after surging $5.19 (2.95%) today, strongly outperforming the S&P 500 (0.66%). This is the biggest single-day gain in over two weeks. The last time we've seen such an unusually strong single-day gain on March 26th, ADS gained 0.64% on the following trading day. Today's close at 180.93 marks the highest recorded closing price since February 5th. Closing above Thursday's high at 177.48, the market confirmed its breakout through the prior session high after trading up to $5.47 above it intraday.
Daily Candlestick Chart (ADS as at Apr 12, 2019):
Friday's trading range has been $5.91 (3.34%), that's far above the last trading month's daily average range of $4.19. 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 slightly higher than usual for ADS.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Unable to break through the key technical resistance level at 182.50 (R1), the stock closed below it after spiking up to 182.95 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Alliance Data. Out of 282 times, ADS closed higher 58.51% 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 57.80% with an average market move of 0.84%.