AJG rallies, gaining $2.92 (2.79%) within a single day on high volume
Arthur J. Gallagher & Co. (AJG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AJG finished the month 10.26% higher at 107.49 after surging $2.92 (2.79%) today on high volume, strongly outperforming the S&P 500 (0.77%) following Thursday's earnings report. This is the biggest single-day gain in over two months. The last time we've seen such an unusually strong single-day gain on June 5th, AJG gained 1.44% on the following trading day. Today's close at 107.49 marks the highest recorded closing price since February 21st.
Daily Candlestick Chart (AJG as at Jul 31, 2020):
AJG reported earnings of $0.94 per share after Thursday's market close. With analysts having expected an EPS of $0.72, Arthur J. Gallagher & Co. topped market expectations by 30.6%. The company's last earnings report was released on April 30, 2020, when Arthur J. Gallagher & Co. reported earnings of $1.83 per share topping market expectations by 4.6%.
Friday's trading range has been $3.53 (3.33%), that's far above the last trading month's daily average range of $1.88. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AJG.
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 109.46, upside momentum could accelerate should the share 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 Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Arthur J.. Out of 22 times, AJG closed higher 63.64% 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 77.27% with an average market move of 2.32%.