AME closes within prior day's range after lackluster session
AMETEK Inc. (AME) Technical Analysis Report for Jul 23, 2020 | by Techniquant Editorial Team
AME finished Thursday at 93.32 edging lower $0.30 (-0.32%), but still outperforming the S&P 500 (-1.23%). Trading $0.58 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. 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 Jul 23, 2020):
Thursday's trading range has been $1.28 (1.37%), that's far below the last trading month's daily average range of $1.90. 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.
After moving higher in the prior session, the stock closed lower but above the previous day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on March 31st, AME lost -3.07% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 94.21 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 91.11 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for AMETEK. Out of 206 times, AME closed higher 60.19% 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 58.74% with an average market move of 0.43%.