AEE closes above its opening price after recovering from early selling pressure
Ameren Corporation (AEE) Technical Analysis Report for Jun 26, 2020 | by Techniquant Editorial Team
AEE ended the week -1.29% lower at 68.90 after gaining $0.09 (0.13%) today on high volume, strongly outperforming the S&P 500 (-2.42%). Trading up to $0.87 lower after the open, Ameren managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, AEE actually lost -0.94% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AEE as at Jun 26, 2020):
Friday's trading range has been $1.93 (2.82%), that's below the last trading month's daily average range of $2.28. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AEE. Prices continued to consolidate within a tight trading range between 67.14 and 69.87 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After having been unable to move above 69.44 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 69.58.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 67.14 where further sell stops could get triggered. Trading close to April's low at 65.90 we might see further downside momentum if potential sell stops at the level get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Ameren. Out of 632 times, AEE closed higher 54.11% 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 61.71% with an average market move of 0.72%.