ALTR finds buyers again around 39.04
Altair Engineering Inc. (ALTR) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
ALTR finished Thursday at 39.40 losing $0.91 (-2.26%), significantly underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. The bears were in full control today, moving the market lower throughout the whole session. 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 Jul 02, 2020):
Thursday's trading range has been $1.96 (4.78%), that's above the last trading month's daily average range of $1.48. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ALTR.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on June 19th, ALTR actually gained 3.46% on the following trading day. Additionally, three candlestick patterns are matching today's price action, the Bearish Belt-hold, the Black Candle and the Dark Cloud Cover which are known as bearish patterns.
Prices broke below the key technical support level at 39.64 (now R1), which is likely to act as resistance going forward. After having been unable to move lower than 39.09 in the previous session, the market found buyers again around the same price level today at 39.04.
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 close-by swing low at 37.91 where further sell stops could get activated. With prices trading close to this year's high at 41.23, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the 10 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 214 times, ALTR closed higher 57.94% 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 62.15% with an average market move of 2.39%.