AIV rises to highest close since November 1, 2019
Apartment Investment and Management Company (AIV) Technical Analysis Report for Feb 20, 2020 | by Techniquant Editorial Team
AIV finished Thursday at 55.16 surging $0.89 (1.64%), strongly outperforming the S&P 500 (-0.38%). This is the biggest single-day gain in over six months. Today's close at 55.16 marks the highest recorded closing price since November 1, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 54.95, Apartment Investment confirmed its breakout through the prior session high after trading up to $0.23 above it intraday.
Daily Candlestick Chart (AIV as at Feb 20, 2020):
Thursday's trading range has been $1.13 (2.08%), that's far above the last trading month's daily average range of $0.68. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AIV.
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. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 54.05 earlier during the day, the stock bounced off the key technical support level at 54.27 (S2). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on October 16, 2019, AIV gained 0.19% on the following trading day.
Crossing above the upper Bollinger Band for the first time since Tuesday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 53.76 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 55.49 is within reach and we could see further upside momentum should the share manage to break out beyond.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S2" stand out. Its common bullish interpretation has been confirmed for Apartment Investment. Out of 35 times, AIV closed higher 68.57% 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 60.00% with an average market move of 0.03%.