AIT finds buyers around 69.44 for the third day in a row
Applied Industrial Technologies Inc. (AIT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AIT finished the week 4.08% higher at 69.58 after losing $0.49 (-0.7%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AIT as at Feb 14, 2020):
Friday's trading range has been $0.83 (1.18%), that's far below the last trading month's daily average range of $1.29. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AIT. Prices continued to consolidate within a tight trading range between 69.40 and 70.62 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on January 22nd, AIT lost -0.68% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
The market found buyers again today around 69.44 for the third trading day in a row after having found demand at 69.50 in the previous session and at 69.40 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 70.62 where further buy stops might get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Applied Industrial. Out of 141 times, AIT closed higher 51.06% 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 58.87% with an average market move of 0.38%.