ALGT runs into sellers again around 112.34
Allegiant Travel Company (ALGT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
ALGT finished the month 2.5% higher at 109.21 after losing $2.42 (-2.17%) today on low volume, significantly underperforming the S&P 500 (1.54%). Trading $2.11 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ALGT as at Jun 30, 2020):
Tuesday's trading range has been $4.76 (4.32%), that's far below the last trading month's daily average range of $9.11. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ALGT.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on May 7th, ALGT actually gained 13.86% on the following trading day.
Prices are trading close to the key technical support level at 105.58 (S1). After having been unable to move above 112.48 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 112.34.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 112.48 where further buy stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Allegiant Travel. Out of 483 times, ALGT closed higher 53.62% 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 57.35% with an average market move of 1.24%.