ADSK closes below its opening price unable to hold early session gains
Autodesk Inc. (ADSK) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ADSK finished the week 3.02% higher at 199.19 after gaining $0.59 (0.3%) today on high volume, significantly outperforming the Nasdaq 100 (-0.82%). Today's close at 199.19 marks the highest recorded closing price ever. Trading $1.47 higher after the open, Autodesk was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ADSK as at Jan 24, 2020):
Friday's trading range has been $2.99 (1.5%), that's slightly below the last trading month's daily average range of $3.03. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ADSK.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on January 15th, ADSK actually gained 0.90% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 190.33.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Autodesk. Out of 331 times, ADSK closed higher 55.89% 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 59.52% with an average market move of 1.22%.