AMN closes lower for the 3rd day in a row
AMN Healthcare Services Inc (AMN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, AMN ended Thursday at 53.21 losing $6.95 (-11.55%) on high volume, significantly underperforming the S&P 500 (6.24%). Today's close at 53.21 marks the lowest recorded closing price since August 6, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 60.00, the share confirmed its breakout through the previous session low after trading up to $8.22 below it intraday.
Daily Candlestick Chart (AMN as at Mar 26, 2020):
Thursday's trading range has been $8.97 (14.91%), that's slightly above the last trading month's daily average range of $7.45. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for AMN.
One bearish candlestick pattern matches today's price action, the Black Candle.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 70.67.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
2019's low at 45.04 is within reach and we could see further downside momentum should the market break out beyond.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for AMN Healthcare. Out of 301 times, AMN closed higher 53.16% 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 63.46% with an average market move of 1.70%.