AME finds buyers again around 85.74
AMETEK Inc. (AME) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
AME ended the week -2.32% lower at 86.90 after gaining $0.64 (0.74%) today, slightly underperforming the S&P 500 (1.05%). Trading up to $0.45 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jul 10, 2020):
Friday's trading range has been $1.23 (1.43%), that's far below the last trading month's daily average range of $2.36. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently 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 May 22nd, AME gained 2.92% on the following trading day.
After having been unable to move lower than 85.76 in the previous session, the market found buyers again around the same price level today at 85.74.
AMETEK shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling could move prices lower should the market test June's close-by low at 84.53.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for AMETEK. Out of 473 times, AME closed higher 54.55% 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 57.29% with an average market move of 0.52%.