AME finds buyers again around 92.29
AMETEK Inc. (AME) Technical Analysis Report for Jul 30, 2020 | by Techniquant Editorial Team
AME finished Thursday at 93.90 losing $0.45 (-0.48%), slightly underperforming the S&P 500 (-0.38%). Trading up to $0.92 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 prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AME as at Jul 30, 2020):
Thursday's trading range has been $1.82 (1.95%), that's slightly above the last trading month's daily average range of $1.75. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly 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 92.02 and 94.66 where it has been caught now for the whole last trading week.
After trading down to 92.29 earlier during the day, the market bounced off the key technical support level at 92.34 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on June 15th, AME gained 2.79% on the following trading day. After having been unable to move lower than 92.43 in the prior session, AMETEK found buyers again around the same price level today at 92.29.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 94.66 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 92.02 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for AMETEK. Out of 461 times, AME closed higher 57.92% 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 58.57% with an average market move of 0.79%.