AME closes higher for the 3rd day in a row
AMETEK Inc. (AME) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AME ended Thursday at 72.41 gaining $1.41 (1.99%), significantly underperforming the S&P 500 (6.24%). Trading up to $2.65 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 March 19th, AME actually lost -8.17% on the following trading day. 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 (AME as at Mar 26, 2020):
Thursday's trading range has been $4.72 (6.52%), that's below the last trading month's daily average range of $6.18. 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 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, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 66.75 (S1). Prices are trading close to the key technical resistance level at 74.70 (R1). After having been unable to move above 74.49 in the previous session, AMETEK ran into sellers again around the same price level today, failing to move higher than 74.44.
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 74.49 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for AMETEK. Out of 581 times, AME closed higher 55.42% 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 58.86% with an average market move of 0.63%.