ALTR closes within prior day's range
Altair Engineering Inc. (ALTR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
ALTR finished the month 1.38% higher at 40.30 after losing $0.21 (-0.52%) today, significantly underperforming the S&P 500 (0.77%). 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 Jul 31, 2020):
Friday's trading range has been $1.14 (2.82%), that's slightly below the last trading month's daily average range of $1.25. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ALTR. Prices continued to consolidate within a tight trading range between 39.22 and 40.81 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on April 24th, ALTR actually gained 3.05% on the following trading day.
After trading down to 39.22 earlier during the day, the share bounced off the key technical support level at 39.64 (S1). The failure to close below the support might increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 40.81 where further buy stops might get triggered. With prices trading close to this year's high at 41.23, upside momentum could speed up should Altair Engineering be able to break out to new highs for the year. As prices are trading close to July's high at 41.00, upside momentum might accelerate should the stock mark new highs for the month.
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 Altair Engineering. Out of 117 times, ALTR closed higher 60.68% 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 59.83% with an average market move of 1.27%.