AEE finds buyers again around 76.33
Ameren Corporation (AEE) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
AEE ended the week -3.12% lower at 77.05 after gaining $0.20 (0.26%) today on low volume, underperforming the S&P 500 (1.09%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AEE as at Oct 11, 2019):
Friday's trading range has been $1.21 (1.58%), that's above the last trading month's daily average range of $0.97. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for AEE.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Despite a weak opening Ameren managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on September 11th, AEE gained 2.31% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 77.28 (R1), the stock closed below it after spiking up to 77.54 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 76.39 in the prior session, the share found buyers again around the same price level today at 76.33.
While the market 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 five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Ameren. Out of 68 times, AEE closed higher 61.76% 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 55.88% with an average market move of 0.48%.