AME loses $0.46 (-0.48%) after posting strong earnings
AMETEK Inc. (AME) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
AME ended Tuesday at 94.49 losing $0.46 (-0.48%), underperforming the S&P 500 (0.36%) following today's earnings report. 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 Aug 04, 2020):
AME reported earnings of $0.84 per share before today's market open. With analysts having expected an EPS of $0.72, AMETEK Inc. beat market expectations by 16.7%. The company's last earnings report was released on May 5, 2020, when AMETEK Inc. reported earnings of $1.02 per share topping market expectations by 6.3%.
Tuesday's trading range has been $2.86 (3.07%), that's far above the last trading month's daily average range of $1.85. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AME.
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 July 27th, AME actually lost -1.04% on the following trading day.
Unable to break through the key technical resistance level at 94.66 (R1), the share closed below it after spiking up to 95.99 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 93.27 in the prior session, AMETEK found buyers again around the same price level today at 93.13.
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 might see further upside momentum if potential buy stops at the level get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post 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 51.61% 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 74.19% with an average market move of 2.09%.