ALLE closes above its opening price after recovering from early selling pressure
Allegion plc (ALLE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
ALLE finished the month -2.7% lower at 99.46 after gaining $1.88 (1.93%) today, notably outperforming the S&P 500 (0.77%). Trading up to $1.24 lower after the open, Allegion plc managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 97.88, the stock confirmed its breakout through the previous session high after trading up to $1.63 above it intraday.
Daily Candlestick Chart (ALLE as at Jul 31, 2020):
Friday's trading range has been $2.97 (3.04%), that's slightly above the last trading month's daily average range of $2.55. 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 ALLE.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on July 22nd, ALLE actually lost -8.10% on the following trading day.
The share managed to close back above the 100-day moving average at 99.13. Prices are trading close to the key technical resistance level at 101.59 (R1).
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling could move prices lower should the market test June's nearby low at 95.08.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Allegion plc. Out of 40 times, ALLE closed higher 62.50% 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 57.50% with an average market move of 0.26%.