AMH crashes, losing $0.41 (-1.74%) within a single day
American Homes 4 Rent of Beneficial Interest (AMH) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
AMH ended Tuesday at 23.20 tanking $0.41 (-1.74%), significantly underperforming the S&P 500 (0.05%). This is the biggest single-day loss in over a month. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 23.50, American Homes confirmed its breakout through the prior session low after trading up to $0.36 below it intraday.
Daily Candlestick Chart (AMH as at Apr 16, 2019):
Tuesday's trading range has been $0.48 (2.03%), that's far above the last trading month's daily average range of $0.33. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AMH.
Two candlestick patterns are matching today's price action, the Black Candle and the Evening Star which are both known as bearish patterns. The last time a Evening Star showed up on September 8, 2016, AMH lost -2.27% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 22.93.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Evening Star" stand out. Its common bearish interpretation has been confirmed for American Homes. Out of 3 times, AMH closed lower 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 100.00% with an average market move of -1.36%.