AIT pushes through key technical resistance level
Applied Industrial Technologies Inc. (AIT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AIT finished Wednesday at 58.11 gaining $1.18 (2.07%) on high volume, strongly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AIT as at Sep 16, 2020):
Wednesday's trading range has been $2.23 (3.91%), that's far above the last trading month's daily average range of $1.58. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AIT.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar.
Buyers managed to take out the key technical resistance level at 57.09 (now S1), which is likely to act as support going forward. The last time this happened on July 29th, AIT actually lost -1.95% on the following trading day. Applied Industrial was bought again around 56.71 after having seen lows at 56.77, 57.02 and 56.76 in the last three trading sessions. Obviously there is something going on at that level.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous three Lows" stand out. Its common bullish interpretation has been confirmed for Applied Industrial. Out of 24 times, AIT closed higher 58.33% 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 75.00% with an average market move of 1.50%.