AM closes above its opening price after recovering from early selling pressure
Antero Midstream Partners LP representing limited partner interests (AM) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
AM ended the week 22.4% higher at 6.94 after gaining $0.08 (1.17%) today on low volume, notably outperforming the S&P 500 (0.06%). Today's close at 6.94 marks the highest recorded closing price since January 17th. Trading up to $0.12 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 29th, AM gained 4.86% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AM as at Aug 07, 2020):
Friday's trading range has been $0.30 (4.41%), that's slightly above the last trading month's daily average range of $0.29. Weekly volatility is also higher, being way above 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 prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
Prices are trading close to the key technical resistance level at 7.04 (R1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 6.00.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 7.04 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Antero Midstream. Out of 9 times, AM closed higher 88.89% 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 10 trading days, showing a win rate of 77.78% with an average market move of 4.75%.