AMP closes above its opening price after recovering from early selling pressure
Ameriprise Financial Inc. (AMP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AMP finished the week 8.59% higher at 132.46 after edging higher $0.34 (0.26%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 132.46 marks the highest recorded closing price since March 5th. Trading up to $2.58 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AMP as at May 22, 2020):
Friday's trading range has been $3.71 (2.81%), that's below the last trading month's daily average range of $5.58. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AMP. Prices continued to consolidate within a tight trading range between 126.05 and 134.38 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Bullish Spinning Top showed up on May 15th, AMP gained 8.16% on the following trading day.
Though 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 134.38 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Ameriprise Financial. Out of 56 times, AMP closed higher 67.86% 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 seven trading days, showing a win rate of 60.71% with an average market move of -0.08%.