AM runs into sellers again around 5.10
Antero Midstream Partners LP representing limited partner interests (AM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
AM ended the month 6.69% higher at 5.10 after gaining $0.09 (1.8%) today, slightly outperforming the S&P 500 (1.54%). Trading up to $0.21 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, AM actually lost -6.11% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AM as at Jun 30, 2020):
Tuesday's trading range has been $0.33 (6.63%), that's slightly below the last trading month's daily average range of $0.39. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AM.
Even with a weak opening the share managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
After trading as low as 4.77 during the day, Antero Midstream found support at the 50-day moving average at 4.86. After having been unable to move above 5.15 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 5.10.
While AM is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to June's low at 4.68, 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 OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Antero Midstream. Out of 19 times, AM closed higher 63.16% 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 eight trading days, showing a win rate of 52.63% with an average market move of -0.67%.