AEE closes higher for the 4th day in a row
Ameren Corporation (AEE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, AEE ended Wednesday at 77.94 gaining $0.44 (0.57%), strongly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AEE as at Sep 16, 2020):
Wednesday's trading range has been $1.50 (1.94%), that's slightly below the last trading month's daily average range of $1.58. 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.
After trading down to 77.35 earlier during the day, the stock bounced off the key technical support level at 77.42 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on August 24th, AEE actually lost -2.03% on the following trading day. After spiking up to 78.85 during the day, Ameren found resistance at the 20-day moving average at 78.82.
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 79.63 where further buy 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 479 times, AEE closed higher 60.75% 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 59.29% with an average market move of 0.67%.