AME pushes through key technical resistance level
AMETEK Inc. (AME) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
AME ended Thursday at 84.33 gaining $1.00 (1.2%), outperforming the S&P 500 (0.25%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AME as at Aug 15, 2019):
Thursday's trading range has been $1.49 (1.79%), that's slightly below the last trading month's daily average range of $1.67. 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 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. After moving lower in the previous session, AMETEK managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 84.10 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 85.82 (R1). After having been unable to move lower than 83.07 in the previous session, the market found buyers again around the same price level today at 83.13. The last time this happened on Tuesday, AME actually lost -3.21% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could speed up should prices move below the nearby swing low at 83.07 where further sell stops might get triggered. Trading close to June's low at 81.62 we could see further downside momentum if potential sell stops at the level get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for AMETEK. Out of 33 times, AME closed higher 63.64% 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 81.82% with an average market move of 2.67%.