AIT closes within previous day's range after lackluster session
Applied Industrial Technologies Inc. (AIT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
AIT finished the week 10.14% higher at 55.20 after edging higher $0.38 (0.69%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial 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 May 22, 2020):
Friday's trading range has been $1.26 (2.27%), that's far below the last trading month's daily average range of $2.61. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AIT. Prices continued to consolidate within a tight trading range between 52.24 and 56.45 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on May 11th, AIT lost -4.07% on the following trading day.
Prices are trading close to the key technical resistance level at 56.45 (R1). After having been unable to move lower than 54.51 in the previous session, the stock found buyers again around the same price level today at 54.14.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 56.45 where further buy stops could get triggered. Further buying might move prices higher should the market test April's nearby high at 57.47.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Applied Industrial. Out of 570 times, AIT closed higher 52.98% 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 53.68% with an average market move of 0.18%.