AM closes within prior day's range after lackluster session
Antero Midstream Partners LP representing limited partner interests (AM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
AM finished Thursday at 2.30 gaining $0.05 (2.22%), significantly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AM as at Mar 26, 2020):
Thursday's trading range has been $0.19 (8.41%), that's far below the last trading month's daily average range of $0.55. Weekly volatility is also lower, being way 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 previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
After having been unable to move lower than 2.21 in the prior session, the stock found buyers again around the same price level today at 2.25. The last time this happened on Monday, AM gained 2.07% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 2.21 where further sell stops could get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Antero Midstream. Out of 305 times, AM closed lower 55.74% 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 52.79% with an average market move of -0.74%.