AEM rallies, gaining $4.16 (5.52%) within a single day on high volume
Agnico Eagle Mines Limited (AEM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AEM finished the month 24.09% higher at 79.49 after surging $4.16 (5.52%) today on high volume, strongly outperforming the S&P 500 (0.77%). This is the biggest single-day gain in over four months. The last time we've seen such an unusually strong single-day gain on July 24th, AEM gained 3.23% on the following trading day. Today's close at 79.49 marks the highest recorded closing price since December 15, 2010. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (AEM as at Jul 31, 2020):
Friday's trading range has been $3.48 (4.55%), that's above the last trading month's daily average range of $2.57. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for AEM.
One bullish candlestick pattern matches today's price action, the White Candle.
Crossing above the upper Bollinger Band for the first time since Tuesday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 68.77 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Agnico Eagle. Out of 75 times, AEM closed higher 54.67% 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 eight trading days, showing a win rate of 54.67% with an average market move of 0.76%.