ADSK closes within previous day's range after lackluster session
Autodesk Inc. (ADSK) Technical Analysis Report for Aug 12, 2020 | by Techniquant Editorial Team
ADSK finished Wednesday at 231.57 gaining $2.78 (1.22%), strongly underperforming the Nasdaq 100 (2.59%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ADSK as at Aug 12, 2020):
Wednesday's trading range has been $4.54 (1.98%), that's far below the last trading month's daily average range of $6.77. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ADSK.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
Prices are trading close to the key technical support level at 226.55 (S1). Prices are trading close to the key technical resistance level at 236.71 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 237.42. The last time this happened on March 13th, ADSK actually lost -6.30% on the following trading day.
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the nearby swing low at 227.52 where further sell stops could get triggered. Further selling might move prices lower should the market test July's close-by low at 226.55.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Autodesk. Out of 67 times, ADSK closed higher 61.19% 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 59.70% with an average market move of 0.58%.