AEE closes above its opening price after recovering from early selling pressure
Ameren Corporation (AEE) Technical Analysis Report for Jul 07, 2020 | by Techniquant Editorial Team
AEE finished Tuesday at 73.34 flat on low volume, notably outperforming the S&P 500 (-1.08%). Trading up to $0.56 lower after the open, Ameren managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AEE as at Jul 07, 2020):
Tuesday's trading range has been $1.43 (1.97%), that's below the last trading month's daily average range of $2.12. 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 Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on June 30th, AEE gained 3.03% on the following trading day.
Prices are trading close to the key technical support level at 72.61 (S1).
While 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 74.48 where further buy stops might get activated.
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 476 times, AEE closed higher 55.88% 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 58.19% with an average market move of 0.52%.