AEE pushes through Monday's high
Ameren Corporation (AEE) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AEE ended the month -5.85% lower at 70.36 after gaining $0.63 (0.9%) today, underperforming the S&P 500 (1.54%). Closing above Monday's high at 69.80, Ameren confirmed its breakout through the previous session high after trading up to $0.90 above it intraday.
Daily Candlestick Chart (AEE as at Jun 30, 2020):
Tuesday's trading range has been $1.10 (1.58%), that's far below the last trading month's daily average range of $2.25. 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.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on June 3rd, AEE actually lost -2.75% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling could move prices lower should the market test May's close-by low at 66.33.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Ameren. Out of 315 times, AEE closed higher 50.48% 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 56.19% with an average market move of 0.19%.