AIT breaks above 20-day moving average for the first time since February 20th
Applied Industrial Technologies Inc. (AIT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, AIT ended Thursday at 49.60 gaining $4.84 (10.81%), 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 46.46, the market confirmed its breakout through the previous session high after trading up to $3.70 above it intraday.
Daily Candlestick Chart (AIT as at Mar 26, 2020):
Thursday's trading range has been $4.55 (9.98%), that's slightly above the last trading month's daily average range of $3.96. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AIT.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 20-day moving average at 46.87 for the first time since February 20th. When this moving average was crossed above the last time on February 4th, AIT gained 1.46% on the following trading day.
Though Applied Industrial is experiencing a short-term uptrend, this could 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 OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Applied Industrial. Out of 563 times, AIT closed higher 49.91% 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 51.15% with an average market move of 0.30%.