AME closes within previous day's range
AMETEK Inc. (AME) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, AME finished Wednesday at 102.34 edging higher $0.02 (0.02%), slightly outperforming the S&P 500 (-0.46%). Trading $0.69 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on August 11th, AME actually gained 1.99% on the following trading day. 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 Sep 16, 2020):
Wednesday's trading range has been $1.48 (1.44%), that's slightly below the last trading month's daily average range of $1.74. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AME.
Prices are trading close to the key technical support level at 101.60 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 103.95 where further buy stops could get triggered. With prices trading close to this year's high at 103.95, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for AMETEK. Out of 374 times, AME closed higher 54.01% 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 61.23% with an average market move of 0.55%.