ADSK closes above its opening price after recovering from early selling pressure
Autodesk Inc. (ADSK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ADSK ended the week 8.33% higher at 195.78 after gaining $1.03 (0.53%) today, slightly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.52 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, ADSK gained 1.60% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ADSK as at May 22, 2020):
Friday's trading range has been $4.39 (2.26%), that's below the last trading month's daily average range of $6.28. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ADSK. Prices continued to consolidate within a tight trading range between 192.51 and 199.59 where it has been caught now for the last three trading days.
After having been unable to move above 197.58 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 196.90.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 199.59 where further buy stops could get activated. With prices trading close to this year's high at 211.58, upside momentum might speed up should the stock be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Autodesk. Out of 577 times, ADSK closed higher 56.15% 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 56.33% with an average market move of 0.84%.