ALLE closes lower for the 2nd day in a row
Allegion plc (ALLE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ALLE finished the week 3.23% higher at 82.07 after edging lower $0.13 (-0.16%) today on low volume, slightly underperforming the S&P 500 (-0.01%). 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 (ALLE as at Jan 11, 2019):
Friday's trading range has been $0.83 (1.02%), that's far below the last trading month's daily average range of $2.27. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ALLE.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on January 2nd, ALLE actually lost -1.69% on the following trading day.
Prices are trading close to the key technical resistance level at 83.01 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 83.01 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Allegion plc. Out of 153 times, ALLE closed higher 51.63% 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 60.13% with an average market move of 0.74%.