ALLE closes higher for the 4th day in a row
Allegion plc (ALLE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ALLE finished Wednesday at 103.83 surging $2.91 (2.88%) on high volume, notably outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over three months. The last time we've seen such an unusually strong single-day gain on September 2nd, ALLE actually lost -4.18% on the following trading day.
Daily Candlestick Chart (ALLE as at Sep 16, 2020):
Wednesday's trading range has been $3.99 (3.93%), that's far above the last trading month's daily average range of $2.32. Weekly volatility is also higher, being above 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 stock managed to close back above the 100-day moving average at 101.40 for the first time since September 2nd. Unable to break through the key technical resistance level at 104.87 (R1), the market closed below it after spiking up to 105.16 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying might move prices higher should the market test August's nearby high at 106.21.
Among the six 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 53 times, ALLE closed higher 64.15% 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 67.92% with an average market move of 1.59%.