ALK finds buyers again around 30.32
Alaska Air Group Inc. (ALK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ALK finished the week 21.03% higher at 31.02 after losing $0.82 (-2.58%) today on low volume, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ALK as at May 22, 2020):
Friday's trading range has been $2.29 (7.09%), that's above the last trading month's daily average range of $2.00. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ALK.
Two candlestick patterns are matching today's price action, the Black Candle and the Dark Cloud Cover which are both known as bearish patterns.
After having been unable to move lower than 30.21 in the prior session, the market found buyers again around the same price level today at 30.32. The last time this happened on April 8th, ALK gained 8.48% on the following trading day.
Though Alaska Air is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Further buying might move prices higher should the market test April's nearby high at 34.72.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dark Cloud Cover" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Alaska Air. Out of 10 times, ALK closed higher 70.00% 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 70.00% with an average market move of 2.28%.