AEE closes above its opening price after recovering from early selling pressure
Ameren Corporation (AEE) Technical Analysis Report for Jun 24, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AEE ended Wednesday at 69.46 losing $0.54 (-0.77%), but still significantly outperforming the S&P 500 (-2.59%). Today's close at 69.46 marks the lowest recorded closing price since May 21st. Trading up to $1.08 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AEE as at Jun 24, 2020):
Wednesday's trading range has been $1.61 (2.32%), that's far below the last trading month's daily average range of $2.29. 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.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Bullish Spinning Top which are both known as bullish patterns. The last time a Bullish Spinning Top showed up on May 15th, AEE gained 5.05% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Trading close to April's low at 65.90 we could see further downside momentum if potential sell stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Ameren. Out of 475 times, AEE closed higher 55.79% 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 58.32% with an average market move of 0.52%.