AIV closes above its opening price after recovering from early selling pressure
Apartment Investment and Management Company (AIV) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AIV ended the week 1.04% higher at 50.41 after gaining $0.14 (0.28%) today, outperforming the S&P 500 (-0.58%). Today's close at 50.41 marks the highest recorded closing price since April 15th. Trading up to $0.28 lower after the open, Apartment Investment managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on April 26th, AIV actually lost -1.39% on the following trading day. Closing above Thursday's high at 50.31, the market confirmed its breakout through the prior session high after trading up to $0.15 above it intraday.
Daily Candlestick Chart (AIV as at May 17, 2019):
Friday's trading range has been $0.69 (1.38%), that's slightly below the last trading month's daily average range of $0.73. 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 AIV.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 49.77 earlier during the day, the share bounced off the key technical support level at 49.86 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 50.76 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 51.25, upside momentum could accelerate should the stock be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Apartment Investment. Out of 170 times, AIV closed higher 57.65% 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 60.00% with an average market move of 0.82%.