AME stuck within tight trading range
AMETEK Inc. (AME) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AME finished the week 3.09% higher at 101.34 after edging lower $0.10 (-0.1%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AME as at Feb 14, 2020):
Friday's trading range has been $1.23 (1.21%), that's below the last trading month's daily average range of $1.79. 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 higher than usual for AME. Prices continued to consolidate within a tight trading range between 100.55 and 102.00 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on Monday, AME gained 1.57% on the following trading day.
After trading down to 100.55 earlier during the day, AMETEK bounced off the key technical support level at 100.88 (S1). The failure to close below the support might increase that levels importance as support going forward. The share ran into sellers again today around 101.78 for the third trading day in a row after having found sellers at 101.83 in the previous session and at 102.00 two days ago.
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 102.00 where further buy stops might get activated. With prices trading close to this year's high at 102.31, upside momentum could speed up should the stock be able to break out to new highs for the year.
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 466 times, AME closed higher 57.73% 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 59.66% with an average market move of 0.92%.