ALK closes higher for the 2nd day in a row
Alaska Air Group Inc. (ALK) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ALK finished the week 0.27% higher at 64.24 after gaining $0.93 (1.47%) today, strongly outperforming the S&P 500 (0.46%).
Daily Candlestick Chart (ALK as at Jul 12, 2019):
Friday's trading range has been $1.28 (2.01%), that's slightly below the last trading month's daily average range of $1.36. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ALK.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Monday, ALK actually lost -1.53% on the following trading day.
Unable to break through the key technical resistance level at 64.60 (R1), the market closed below it after spiking up to 64.61 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 64.91 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Alaska Air. Out of 767 times, ALK closed higher 51.76% 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 59.58% with an average market move of 1.14%.