AM dominated by bears dragging the market lower throughout the day
Antero Midstream Partners LP representing limited partner interests (AM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AM ended the week -10.55% lower at 4.41 after losing $0.19 (-4.13%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 4.41 marks the lowest recorded closing price ever. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 4.45, the stock confirmed its breakout through the prior session low after trading up to $0.08 below it intraday.
Daily Candlestick Chart (AM as at Feb 14, 2020):
Friday's trading range has been $0.34 (7.31%), that's slightly below the last trading month's daily average range of $0.37. 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.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on February 4th, AM gained 7.07% on the following trading day.
Unable to break through the key technical resistance level at 4.65 (R1), the market closed below it after spiking up to 4.71 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
2019's low at 4.26 is within reach and we could see further downside momentum should the share break out beyond.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Antero Midstream. Out of 35 times, AM closed lower 51.43% 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 62.86% with an average market move of -3.55%.