AJRD pushes through key technical resistance level
Aerojet Rocketdyne Holdings Inc. (AJRD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
AJRD finished Thursday at 42.98 surging $5.09 (13.43%), notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 41.08, Aerojet Rocketdyne confirmed its breakout through the prior session high after trading up to $2.15 above it intraday.
Daily Candlestick Chart (AJRD as at Mar 26, 2020):
Thursday's trading range has been $4.91 (12.62%), that's above the last trading month's daily average range of $3.61. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AJRD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 41.97 (now S1), which is likely to act as support going forward. The last time this happened on March 13th, AJRD actually lost -17.71% on the following trading day. Prices are trading close to the key technical resistance level at 45.07 (R1).
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Aerojet Rocketdyne. Out of 298 times, AJRD closed higher 50.34% 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 57.72% with an average market move of 0.85%.