AIV closes above its opening price after recovering from early selling pressure
Apartment Investment and Management Company (AIV) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
AIV finished the week 6.81% higher at 35.90 after edging higher $0.12 (0.34%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.40 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AIV as at May 22, 2020):
Friday's trading range has been $0.54 (1.51%), that's far below the last trading month's daily average range of $1.31. 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 AIV. Prices continued to consolidate within a tight trading range between 34.91 and 36.99 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After trading down to 35.39 earlier during the day, the market bounced off the key technical support level at 35.64 (S1). The failure to close below the support could increase that levels significance as support going forward. Apartment Investment found buyers again today around 35.39 for the third trading day in a row after having found demand at 35.50 in the prior session and at 35.32 two days ago. The last time this happened on April 3rd, AIV gained 15.93% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 36.70 where further buy stops could get triggered. As prices are trading close to May's high at 38.35, upside momentum might accelerate should the share mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Apartment Investment. Out of 145 times, AIV closed higher 56.55% 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 61.38% with an average market move of 0.64%.