AM drops to lowest close since December 17, 2019
Antero Midstream Partners LP representing limited partner interests (AM) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, AM finished Thursday at 6.51 losing $0.06 (-0.91%), strongly underperforming the S&P 500 (0.11%). Today's close at 6.51 marks the lowest recorded closing price since December 17, 2019. 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 23, 2020):
Thursday's trading range has been $0.30 (4.58%), that's below the last trading month's daily average range of $0.38. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AM.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on January 3rd, AM actually gained 3.64% on the following trading day.
Prices are trading close to the key technical resistance level at 6.76 (R1).
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 7.19.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Antero Midstream. Out of 28 times, AM closed lower 64.29% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 71.43% with an average market move of -1.17%.