AJG finds buyers again around 102.83
Arthur J. Gallagher & Co. (AJG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AJG finished Wednesday at 103.04 edging higher $0.06 (0.06%), outperforming the S&P 500 (-0.46%). Trading $1.04 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AJG as at Sep 16, 2020):
Wednesday's trading range has been $1.55 (1.5%), that's slightly below the last trading month's daily average range of $1.93. 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 101.22 and 104.38 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 102.25 (S1). After spiking up to 104.38 during the day, the share found resistance at the 50-day moving average at 104.19. The last time this happened on September 9th, AJG lost -1.26% on the following trading day. After having been unable to move lower than 102.61 in the prior session, the stock found buyers again around the same price level today at 102.83.
While Arthur J. is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 101.22 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Arthur J.. Out of 175 times, AJG closed higher 57.14% 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 59.43% with an average market move of 0.73%.