ALLE closes within previous day's range after lackluster session
Allegion plc (ALLE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ALLE ended the week 1.45% higher at 94.29 after edging higher $0.29 (0.31%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ALLE as at May 22, 2020):
Friday's trading range has been $1.68 (1.78%), that's far below the last trading month's daily average range of $2.85. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ALLE.
Three candlestick patterns are matching today's price action, the Southern Doji and the Takuri Line which are both known as bullish patterns and one neutral pattern, the Doji. The last time a Takuri Line showed up on March 10th, ALLE actually lost -3.05% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 97.84 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Its common bullish interpretation has been confirmed for Allegion plc. Out of 36 times, ALLE closed higher 58.33% 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 66.67% with an average market move of 2.33%.