AEE closes within previous day's range
Ameren Corporation (AEE) Technical Analysis Report for Jun 23, 2020 | by Techniquant Editorial Team
AEE ended Tuesday at 70.00 losing $0.62 (-0.88%), significantly underperforming the S&P 500 (0.43%). 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 Jun 23, 2020):
Tuesday's trading range has been $2.15 (3.01%), that's slightly below the last trading month's daily average range of $2.34. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AEE.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on June 19th, AEE actually gained 1.17% on the following trading day.
After having been unable to move above 71.34 in the prior session, Ameren ran into sellers again around the same price level today, missing to move higher than 71.33.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 68.28 where further sell stops could get activated. Trading close to April's low at 65.90 we might see further downside momentum if potential sell stops at the level get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Ameren. Out of 631 times, AEE closed higher 54.20% 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 61.81% with an average market move of 0.73%.