AMP climbs to highest close since June 8th
Ameriprise Financial Inc. (AMP) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AMP finished Monday at 160.83 gaining $0.99 (0.62%) on low volume, slightly outperforming the S&P 500 (0.27%). Today's close at 160.83 marks the highest recorded closing price since June 8th.
Daily Candlestick Chart (AMP as at Aug 10, 2020):
Monday's trading range has been $2.20 (1.37%), that's far below the last trading month's daily average range of $3.53. 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 slightly lower than usual for AMP.
Buyers managed to take out the key technical resistance level at 160.14 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since July 21st, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 155.33 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on July 21st, AMP gained 0.40% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to June's high at 164.71 we could see further upside momentum if potential buy stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Ameriprise Financial. Out of 166 times, AMP closed lower 56.02% 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 seven trading days, showing a win rate of 46.99% with an average market move of 0.03%.