AIT breaks back above 20-day moving average
Applied Industrial Technologies Inc. (AIT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AIT ended the month 7.57% higher at 62.39 after gaining $0.93 (1.51%) today, slightly underperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 61.59, the market confirmed its breakout through the prior session high after trading up to $1.03 above it intraday.
Daily Candlestick Chart (AIT as at Jun 30, 2020):
Tuesday's trading range has been $1.57 (2.57%), that's below the last trading month's daily average range of $2.42. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AIT.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Applied Industrial managed to close back above the 20-day moving average at 62.10 for the first time since June 18th. When this moving average was crossed above the last time on June 15th, AIT gained 3.10% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Applied Industrial. Out of 297 times, AIT closed higher 50.51% 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 five trading days, showing a win rate of 56.90% with an average market move of 0.15%.