AEE breaks above 50-day moving average for the first time since June 10th
Ameren Corporation (AEE) Technical Analysis Report for Jul 01, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, AEE ended Wednesday at 72.49 surging $2.13 (3.03%), notably outperforming the S&P 500 (0.5%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on May 28th, AEE gained 1.07% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 70.70, Ameren confirmed its breakout through the previous session high after trading up to $2.05 above it intraday.
Daily Candlestick Chart (AEE as at Jul 01, 2020):
Wednesday's trading range has been $2.49 (3.54%), that's slightly above the last trading month's daily average range of $2.32. Weekly volatility is also higher, being slightly above 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 White Candle.
The market managed to close above the 50-day moving average at 71.98 for the first time since June 10th.
Though the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 73.30 where further buy stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Ameren. Out of 694 times, AEE closed higher 54.61% 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 56.05% with an average market move of 0.26%.