AM breaks back below 20-day moving average
Antero Midstream Partners LP representing limited partner interests (AM) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, AM finished the week -2.93% lower at 23.22 after losing $0.48 (-2.03%) today, significantly underperforming the S&P 500 (-0.01%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AM as at Jan 11, 2019):
Friday's trading range has been $0.45 (1.92%), that's far below the last trading month's daily average range of $1.30. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AM.
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. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on Wednesday, AM lost -3.19% on the following trading day.
Prices are trading close to the key technical support level at 23.02 (S1). The share closed back below the 20-day moving average at 23.42 for the first time since January 4th. After having been unable to move lower than 23.02 in the previous session, the market found buyers again around the same price level today at 23.14.
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the close-by swing low at 23.02 where further sell stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Antero Midstream. Out of 181 times, AM closed higher 50.28% 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 58.01% with an average market move of 1.40%.