AMCX closes lower for the 2nd day in a row
AMC Networks Inc. (AMCX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AMCX ended the week 0.27% higher at 37.79 after losing $0.25 (-0.66%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AMCX as at Feb 14, 2020):
Friday's trading range has been $0.88 (2.32%), that's below the last trading month's daily average range of $1.12. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AMCX.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
Prices are trading close to the key technical support level at 37.09 (S1). After having been unable to move above 38.35 in the prior session, AMC Networks ran into sellers again around the same price level today, missing to move higher than 38.22. The last time this happened on January 16th, AMCX actually gained 2.15% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could accelerate should prices move below the close-by swing low at 37.09 where further sell stops might get activated. With prices trading close to this year's low at 36.36, downside momentum could speed up should the stock break out to new lows for the year. As prices are trading close to February's low at 36.39, downside momentum might accelerate should the market mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for AMC Networks. Out of 104 times, AMCX closed higher 59.62% 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 three trading days, showing a win rate of 55.77% with an average market move of 0.24%.