ALK closes higher for the 2nd day in a row
Alaska Air Group Inc. (ALK) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ALK ended Wednesday at 66.59 gaining $0.41 (0.62%), slightly outperforming the S&P 500 (0.19%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ALK as at Jan 15, 2020):
Wednesday's trading range has been $1.10 (1.67%), that's slightly above the last trading month's daily average range of $1.00. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher 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 January 6th, ALK actually lost -0.63% on the following trading day.
Prices are trading close to the key technical support level at 65.91 (S1). After having been unable to move lower than 66.02 in the previous session, the share found buyers again around the same price level today at 65.96.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the nearby swing high at 67.45 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 65.64 where further sell stops might get activated. With prices trading close to this year's high at 68.79, upside momentum could speed up should Alaska Air be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Alaska Air. Out of 539 times, ALK closed higher 53.25% 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 58.63% with an average market move of 1.08%.