AME pushes through key technical resistance level
AMETEK Inc. (AME) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
AME finished Monday at 94.95 gaining $1.70 (1.82%), significantly outperforming the S&P 500 (0.72%) ahead of Tuesday's earnings report. Today's close at 94.95 marks the highest recorded closing price since June 8th.
Daily Candlestick Chart (AME as at Aug 03, 2020):
AME is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $0.72 per share. The company's last earnings report was released on May 5, 2020, when AMETEK Inc. reported earnings of $1.02 per share surpassing market expectations by 6.3%.
Monday's trading range has been $2.58 (2.75%), that's far above the last trading month's daily average range of $1.80. 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 higher than usual for AME.
Buyers managed to take out the key technical resistance level at 94.66 (now S1), which is likely to act as support going forward. The last time this happened on July 14th, AME gained 1.56% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to June's high at 98.00 we could see further upside momentum if potential buy stops at the level get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day before Earnings Report" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for AMETEK. Out of 31 times, AME closed higher 67.74% 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 70.97% with an average market move of 2.26%.