ALTR closes above its opening price after recovering from early selling pressure
Altair Engineering Inc. (ALTR) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
ALTR finished the week -6.96% lower at 36.38 after gaining $0.28 (0.78%) today, significantly outperforming the S&P 500 (-0.9%). Trading up to $0.32 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ALTR as at Jan 24, 2020):
Friday's trading range has been $0.80 (2.21%), that's slightly below the last trading month's daily average range of $0.89. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ALTR.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving lower in the previous session, the stock managed to close higher but below the prior day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on October 21, 2019, ALTR actually lost -1.30% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Altair Engineering managed to close back above the 200-day moving average at 36.21. After having been unable to move lower than 35.90 in the previous session, the share found buyers again around the same price level today at 35.93.
While ALTR is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the nearby swing low at 35.90 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Altair Engineering. Out of 173 times, ALTR closed higher 57.80% 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 63.58% with an average market move of 2.34%.