AME closes within previous day's range
AMETEK Inc. (AME) Technical Analysis Report for Jul 27, 2020 | by Techniquant Editorial Team
AME finished Monday at 93.05 edging higher $0.15 (0.16%), underperforming the S&P 500 (0.74%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AME as at Jul 27, 2020):
Monday's trading range has been $1.69 (1.82%), that's slightly below the last trading month's daily average range of $1.83. 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. Prices continued to consolidate within a tight trading range between 91.51 and 94.17 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on March 18th, AME gained 5.12% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After having been unable to move lower than 92.39 in the prior session, the share found buyers again around the same price level today at 92.17.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 94.17 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 91.11 where further sell stops might get activated. As prices are trading close to July's high at 94.21, upside momentum could accelerate should AMETEK mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for AMETEK. Out of 115 times, AME closed higher 56.52% 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 61.74% with an average market move of 0.50%.