ALTR closes within prior day's range
Altair Engineering Inc. (ALTR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
ALTR ended the week -2.03% lower at 38.18 after losing $0.69 (-1.78%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ALTR as at Feb 14, 2020):
Friday's trading range has been $1.22 (3.13%), that's slightly above the last trading month's daily average range of $1.12. 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 lower 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, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 38.44 (now R1), which is likely to act as resistance going forward. After having been unable to move lower than 37.85 in the prior session, the stock found buyers again around the same price level today at 37.88. The last time this happened on Wednesday, ALTR gained 2.07% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 37.47 where further sell stops could get activated. With prices trading close to this year's high at 39.74, upside momentum might accelerate should the share be able to break out to new highs for the year. As prices are trading close to February's low at 37.02, downside momentum could speed up should Altair Engineering mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Altair Engineering. Out of 176 times, ALTR closed higher 57.95% 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 63.64% with an average market move of 2.34%.