AME enters Golden Cross for the first time since March 20th
AMETEK Inc. (AME) Technical Analysis Report for Jul 28, 2020 | by Techniquant Editorial Team
AME finished Tuesday at 92.08 losing $0.97 (-1.04%) on low volume, slightly underperforming the S&P 500 (-0.65%). Trading $0.39 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 below Monday's low at 92.17, the market confirmed its breakout through the prior session low after trading up to $0.15 below it intraday.
Daily Candlestick Chart (AME as at Jul 28, 2020):
Tuesday's trading range has been $0.99 (1.07%), that's far below the last trading month's daily average range of $1.78. 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 Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on June 23rd, AME lost -3.64% on the following trading day.
After having been unable to move lower than 92.17 in the previous session, AMETEK found buyers again around the same price level today at 92.02.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. With its 50-day moving average crossing above its 200-day moving average, the stock has entered a so-called "Golden Cross" for the first time since March 20th. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon.
Buying could accelerate should prices move above the nearby swing high at 93.86 where further buy stops might get triggered. Selling could speed up should prices move below the close-by 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 AME mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Golden Cross" stand out. Its common bullish interpretation has been confirmed for AMETEK. Out of 5 times, AME closed higher 60.00% 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 80.00% with an average market move of 0.95%.