AMN dominated by bears dragging the market lower throughout the day
AMN Healthcare Services Inc (AMN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
AMN ended the week 13.71% higher at 43.96 after losing $1.66 (-3.64%) today on low volume, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 44.17, the market confirmed its breakout through the previous session low after trading up to $0.29 below it intraday.
Daily Candlestick Chart (AMN as at May 22, 2020):
Friday's trading range has been $1.94 (4.23%), that's below the last trading month's daily average range of $2.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AMN.
In spite of a strong opening AMN Healthcare closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on May 15th, AMN actually gained 9.42% on the following trading day.
Prices are trading close to the key technical support level at 43.78 (S1). After having been unable to move lower than 44.17 in the previous session, the share found buyers again around the same price level today at 43.88.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 46.00 where further buy stops might get activated. As prices are trading close to May's high at 46.27, upside momentum could accelerate should the stock mark new highs for the month.
Among the nine 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 305 times, AMN closed higher 52.46% 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 62.95% with an average market move of 1.55%.