ALLE closes higher for the 2nd day in a row
Allegion plc (ALLE) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ALLE finished the month 2.53% higher at 102.22 after gaining $2.43 (2.44%) today, outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 99.81, Allegion plc confirmed its breakout through the prior session high after trading up to $2.93 above it intraday.
Daily Candlestick Chart (ALLE as at Jun 30, 2020):
Tuesday's trading range has been $3.35 (3.37%), that's slightly below the last trading month's daily average range of $3.62. 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.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 50-day moving average at 100.15 for the first time since June 23rd. When this moving average was crossed above the last time on May 26th, ALLE gained 1.42% on the following trading day. Prices are trading close to the key technical resistance level at 103.79 (R1).
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 104.91 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Allegion plc. Out of 48 times, ALLE closed higher 64.58% 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 72.92% with an average market move of 1.92%.