AME rises to highest close since March 6th
AMETEK Inc. (AME) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, AME finished the week 7.93% higher at 85.90 after gaining $1.04 (1.23%) today, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 85.90 marks the highest recorded closing price since March 6th. Closing above Thursday's high at 85.39, the stock confirmed its breakout through the prior session high after trading up to $0.61 above it intraday.
Daily Candlestick Chart (AME as at May 22, 2020):
Friday's trading range has been $1.54 (1.81%), that's below the last trading month's daily average range of $2.18. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AME.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on April 17th, AME actually lost -3.19% on the following trading day.
After having been unable to move lower than 84.27 in the previous session, the market found buyers again around the same price level today at 84.46.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the close-by swing low at 84.27 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for AMETEK. Out of 632 times, AME closed higher 53.48% 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 58.07% with an average market move of 0.67%.