AM closes within prior day's range
Antero Midstream Partners LP representing limited partner interests (AM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AM ended the month 11.18% higher at 5.67 after losing $0.16 (-2.74%) today, strongly underperforming the S&P 500 (0.77%). 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 Jul 31, 2020):
Friday's trading range has been $0.24 (4.2%), that's slightly below the last trading month's daily average range of $0.28. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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. After moving higher in the previous session, the market closed lower but above the prior day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on June 1st, AM actually gained 6.36% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
The stock closed back below the 20-day moving average at 5.73.
While Antero Midstream is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 5.90 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for Antero Midstream. Out of 75 times, AM closed lower 52.00% 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 seven trading days, showing a win rate of 61.33% with an average market move of 1.44%.