AMN closes lower for the 2nd day in a row
AMN Healthcare Services Inc (AMN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AMN ended the month 21.44% higher at 54.94 after losing $0.34 (-0.62%) today, significantly underperforming the S&P 500 (0.77%). Trading $0.50 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AMN as at Jul 31, 2020):
Friday's trading range has been $1.39 (2.53%), that's below the last trading month's daily average range of $1.74. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AMN. Prices continued to consolidate within a tight trading range between 53.50 and 56.20 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on July 16th, AMN actually gained 0.74% on the following trading day.
After having been unable to move above 55.53 in the prior session, AMN Healthcare ran into sellers again around the same price level today, missing to move higher than 55.51.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 56.20 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 53.81 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for AMN Healthcare. Out of 281 times, AMN closed higher 53.02% 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 63.35% with an average market move of 1.32%.