AIR.PA closes below its opening price unable to hold early session gains
Airbus SE (AIR.PA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AIR.PA ended the month -2.38% lower at 62.01 after losing €1.33 (-2.1%) today. Trading €0.90 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 62.16, Airbus confirmed its breakout through the previous session low after trading up to €0.35 below it intraday.
Daily Candlestick Chart (AIR.PA as at Jul 31, 2020):
Friday's trading range has been €2.17 (3.44%), that's slightly below the last trading month's daily average range of €2.47. 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 AIR.PA.
Prices are trading close to the key technical support level at 61.27 (S1). The share was bought again around 61.81 after having seen lows at 62.16, 62.18 and 61.76 in the last three trading sessions. Obviously there is something going on at that level.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 61.75 where further sell stops could get activated. Further selling might move prices lower should the market test June's close-by low at 57.66.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Airbus. Out of 485 times, AIR.PA closed higher 52.58% 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 56.91% with an average market move of 0.80%.