ALV breaks below Thursday's low
Autoliv Inc. (ALV) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, ALV finished the month 0.81% higher at 65.03 after losing $1.94 (-2.9%) today, strongly underperforming the S&P 500 (0.77%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 66.56, the stock confirmed its breakout through the previous session low after trading up to $2.19 below it intraday.
Daily Candlestick Chart (ALV as at Jul 31, 2020):
Friday's trading range has been $2.56 (3.83%), that's far above the last trading month's daily average range of $1.66. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ALV.
One bearish candlestick pattern matches today's price action, the Black Candle.
The share closed below the 50-day moving average at 65.67 for the first time since July 1st. When this moving average was crossed below the last time on July 1st, ALV actually gained 4.27% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 63.71 where further sell stops could get triggered. As prices are trading close to July's low at 62.18, downside momentum might speed up should the market mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Autoliv. Out of 313 times, ALV closed higher 52.08% 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 60.06% with an average market move of 0.51%.