ALSN closes lower for the 2nd day in a row
Allison Transmission Holdings Inc. (ALSN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ALSN ended the week 1.42% higher at 44.24 after edging lower $0.11 (-0.25%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ALSN as at Feb 14, 2020):
Friday's trading range has been $0.61 (1.38%), that's below the last trading month's daily average range of $0.98. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ALSN.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 43.91 earlier during the day, Allison Transmission bounced off the key technical support level at 43.91 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on February 4th, ALSN gained 3.07% on the following trading day.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 45.20 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Allison Transmission. Out of 368 times, ALSN closed higher 57.61% 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 51.63% with an average market move of 0.60%.