ALTR closes within previous day's range after lackluster session
Altair Engineering Inc. (ALTR) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
ALTR finished the week 0.03% higher at 36.00 after losing $0.41 (-1.13%) today, underperforming the S&P 500 (-0.58%). Trading $0.84 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on May 10th, ALTR lost -5.39% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ALTR as at May 17, 2019):
Friday's trading range has been $0.98 (2.72%), that's below the last trading month's daily average range of $1.23. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for ALTR.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Gravestone Doji and the Shooting Star which are both known as bearish patterns and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 35.17 (S1). Unable to break through the key technical resistance level at 36.33 (R1), the stock closed below it after spiking up to 36.87 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move above 36.95 in the prior session, Altair Engineering ran into sellers again around the same price level today, failing to move higher than 36.87.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the nearby swing high at 36.95 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Altair Engineering. Out of 7 times, ALTR closed higher 71.43% 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 two trading days, showing a win rate of 57.14% with an average market move of -0.41%.