AEE pushes through Friday's high
Ameren Corporation (AEE) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AEE ended Monday at 69.73 gaining $0.83 (1.2%), slightly underperforming the S&P 500 (1.47%). Trading up to $0.91 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Friday's high at 69.58, the share confirmed its breakout through the previous session high after trading up to $0.22 above it intraday.
Daily Candlestick Chart (AEE as at Jun 29, 2020):
Monday's trading range has been $1.27 (1.83%), that's far below the last trading month's daily average range of $2.26. 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.
One bullish candlestick pattern matches today's price action, the Takuri Line.
After trading down to 68.53 earlier during the day, Ameren bounced off the key technical support level at 69.42 (S1). The failure to close below the support could increase that levels significance as support going forward. The market ran into sellers again today around 69.80 for the third trading day in a row after having found sellers at 69.58 in the prior session and at 69.44 two days ago. The last time this happened on June 2nd, AEE actually gained 1.56% 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 might see further downside momentum if potential sell stops at the level get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Ameren. Out of 125 times, AEE closed higher 62.40% 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 59.20% with an average market move of 0.38%.