AIMC runs into sellers again around 20.33
Altra Industrial Motion Corp. (AIMC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, AIMC finished Thursday at 20.19 gaining $1.92 (10.51%), notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 20.18, Altra Industrial confirmed its breakout through the prior session high after trading up to $0.15 above it intraday.
Daily Candlestick Chart (AIMC as at Mar 26, 2020):
Thursday's trading range has been $2.17 (11.76%), that's slightly below the last trading month's daily average range of $2.17. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AIMC.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 19th, AIMC actually lost -5.21% on the following trading day.
Prices are trading close to the key technical resistance level at 21.33 (R1). After having been unable to move above 20.18 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 20.33.
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.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Altra Industrial. Out of 70 times, AIMC closed higher 51.43% 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 60.00% with an average market move of 0.79%.