AJG closes above its opening price after recovering from early selling pressure
Arthur J. Gallagher & Co. (AJG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
AJG finished Thursday at 80.78 gaining $3.57 (4.62%), strongly underperforming the S&P 500 (6.24%). Trading up to $2.01 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 17th, AJG actually lost -15.24% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AJG as at Mar 26, 2020):
Thursday's trading range has been $4.80 (6.13%), that's below the last trading month's daily average range of $6.59. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for AJG.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 81.47 (R1). After having been unable to move lower than 75.29 in the previous session, Arthur J. found buyers again around the same price level today at 76.27.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 81.47 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Arthur J.. Out of 713 times, AJG closed higher 53.86% 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 61.01% with an average market move of 0.52%.