AMT closes within prior day's range
American Tower Corporation (AMT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
AMT finished the week 7.33% higher at 256.25 after losing $0.65 (-0.25%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $1.32 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 missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AMT as at Feb 14, 2020):
Friday's trading range has been $3.03 (1.18%), that's slightly below the last trading month's daily average range of $3.84. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for AMT.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 258.62 (R1).
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 240.37. The last time this happened on December 24, 2019, AMT actually gained 0.35% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 258.62 where further buy stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for American Tower. Out of 95 times, AMT closed higher 53.68% 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 62.11% with an average market move of 0.70%.