AME finds buyers at key support level
AMETEK Inc. (AME) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
AME finished the week -7.44% lower at 72.80 after gaining $0.95 (1.32%) today, slightly underperforming the S&P 500 (1.42%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AME as at Oct 12, 2018):
Friday's trading range has been $1.63 (2.23%), that's above the last trading month's daily average range of $1.11. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for AME.
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 bullish candlestick pattern matches today's price action, the Takuri Line.
After trading down to 71.74 earlier during the day, the share bounced off the key technical support level at 72.79 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Monday, AME actually lost -1.44% on the following trading day. After having been unable to move lower than 71.65 in the previous session, Ametek found buyers again around the same price level today at 71.74.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 78.74.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 71.65 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Ametek. Out of 504 times, AME closed higher 58.13% 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 62.10% with an average market move of 1.21%.