ADSK finds buyers again around 230.33
Autodesk Inc. (ADSK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ADSK finished Wednesday at 230.76 losing $5.11 (-2.17%), slightly underperforming the Nasdaq 100 (-1.67%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 231.09, Autodesk confirmed its breakout through the previous session low after trading up to $0.76 below it intraday.
Daily Candlestick Chart (ADSK as at Sep 16, 2020):
Wednesday's trading range has been $7.25 (3.07%), that's slightly below the last trading month's daily average range of $8.82. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ADSK.
Notwithstanding a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 3rd, ADSK lost -3.39% on the following trading day.
Prices are trading close to the key technical support level at 229.25 (S1). After having been unable to move lower than 231.09 in the previous session, the share found buyers again around the same price level today at 230.33.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might speed up should prices move below the nearby swing low at 223.27 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Autodesk. Out of 93 times, ADSK closed higher 62.37% 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 53.76% with an average market move of 0.55%.