ADT ends the day indecisive
ADT Inc. (ADT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ADT finished Wednesday at 9.36 tanking $1.44 (-13.33%) on high volume, strongly underperforming the S&P 500 (-0.46%). This is the biggest single-day loss ever recorded for the market. Today's close at 9.36 marks the lowest recorded closing price since July 31st. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ADT as at Sep 16, 2020):
Wednesday's trading range has been $0.41 (4.32%), that's slightly above the last trading month's daily average range of $0.40. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for ADT.
The stock closed below the 50-day moving average at 10.14 for the first time since April 24th. When this moving average was crossed below the last time on April 15th, ADT lost -0.75% on the following trading day.
Crossing below the lower Bollinger Band for the first time since September 4th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 10.86 or signal the beginning of a strong momentum breakout leading to even lower prices.
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for ADT. Out of 16 times, ADT closed higher 68.75% of the time on the next trading day after the market condition occurred.