AEE closes within previous day's range
Ameren Corporation (AEE) Technical Analysis Report for Aug 12, 2020 | by Techniquant Editorial Team
AEE ended Wednesday at 81.98 gaining $0.82 (1.01%), slightly underperforming the S&P 500 (1.4%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AEE as at Aug 12, 2020):
Wednesday's trading range has been $2.03 (2.49%), that's slightly above the last trading month's daily average range of $1.91. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AEE.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on Monday, AEE actually lost -2.51% on the following trading day.
After trading down to 80.97 earlier during the day, the share bounced off the key technical support level at 81.31 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move lower than 80.85 in the prior session, the stock found buyers again around the same price level today at 80.97.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 83.96 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 80.85 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Ameren. Out of 485 times, AEE closed higher 61.24% 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 58.35% with an average market move of 0.67%.