ADSK closes within previous day's range
Autodesk Inc. (ADSK) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
ADSK ended the month -1.15% lower at 236.43 after edging higher $0.33 (0.14%) today, significantly underperforming the Nasdaq 100 (1.78%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ADSK as at Jul 31, 2020):
Friday's trading range has been $6.86 (2.88%), that's slightly below the last trading month's daily average range of $7.10. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ADSK.
One bullish candlestick pattern matches today's price action, the Hammer.
Prices are trading close to the key technical resistance level at 237.34 (R1). After having been unable to move lower than 231.42 in the prior session, Autodesk found buyers again around the same price level today at 231.50. The last time this happened on Tuesday, ADSK gained 1.72% on the following trading day.
Though the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 240.60 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 231.42 where further sell stops could get triggered. With prices trading close to this year's high at 251.39, upside momentum might accelerate should the market be able to break out to new highs for the year. As prices are trading close to July's low at 226.55, downside momentum could speed up should the stock mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for Autodesk. Out of 22 times, ADSK closed higher 59.09% 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 three trading days, showing a win rate of 72.73% with an average market move of 0.85%.