AJG finds buyers around 89.89 for the forth day in a row

Arthur J. Gallagher & Co. (AJG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team


AJG breaks above 100-day moving average for the first time since March 10th
AJG finds buyers around 89.89 for the forth day in a row
AJG rises to highest close since March 11th
AJG closes above its opening price after recovering from early selling pressure
AJG closes higher for the 3rd day in a row


Moving higher for the 3rd day in a row, AJG ended the week 4.44% higher at 91.10 after edging higher $0.10 (0.11%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 91.10 marks the highest recorded closing price since March 11th. Trading up to $1.07 lower after the open, the share 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 (AJG as at May 22, 2020):

Daily technical analysis candlestick chart for Arthur J. Gallagher & Co. (AJG) as at May 22, 2020

Friday's trading range has been $1.28 (1.41%), that's far below the last trading month's daily average range of $2.58. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AJG. Prices continued to consolidate within a tight trading range between 89.49 and 91.59 where it has been caught now for the whole last trading week.

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 bearish candlestick pattern matches today's price action, the Hanging Man.

The stock managed to close above the 100-day moving average at 90.98 for the first time since March 10th. When this moving average was crossed above the last time on March 10th, AJG actually lost -2.64% on the following trading day. The market was bought again around 89.89 after having seen lows at 89.67, 90.01 and 89.79 in the last three trading sessions. Obviously there is something going on at that level.

Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.

Buying might accelerate should prices move above the nearby swing high at 91.59 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 89.67 where further sell stops could get activated.

Among the 12 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. While it is usually interpreted as bullish, it has actually shown to be bearish for Arthur J.. Out of 20 times, AJG closed lower 70.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 70.00% with an average market move of -1.29%.

Market Conditions for AJG as at May 22, 2020

Loading Market Conditions for AJG (Arthur J. Gallagher & Co.)...
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