AEE pushes through Wednesday's high
Ameren Corporation (AEE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AEE finished Thursday at 72.79 gaining $5.25 (7.77%) on low volume, significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 69.12, the stock confirmed its breakout through the previous session high after trading up to $4.57 above it intraday.
Daily Candlestick Chart (AEE as at Mar 26, 2020):
Thursday's trading range has been $7.05 (10.5%), that's above the last trading month's daily average range of $5.63. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for AEE.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 18th, AEE actually lost -5.61% on the following trading day.
Buyers managed to take out the key technical resistance level at 71.04 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 76.07 (R1).
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Ameren. Out of 694 times, AEE closed higher 53.89% 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 55.76% with an average market move of 0.21%.