AMT pushes through key technical resistance level
American Tower Corporation (AMT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AMT finished the month 0.14% higher at 258.54 after gaining $4.74 (1.87%) today, slightly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 254.46, American Tower confirmed its breakout through the prior session high after trading up to $4.66 above it intraday.
Daily Candlestick Chart (AMT as at Jun 30, 2020):
Tuesday's trading range has been $6.00 (2.36%), that's slightly below the last trading month's daily average range of $7.33. 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 AMT.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 8th, AMT lost -0.42% on the following trading day.
Buyers managed to take out the key technical resistance level at 256.51 (now S1), which is likely to act as support going forward.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 269.25, upside momentum might accelerate should the stock be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for American Tower. Out of 624 times, AMT closed higher 52.08% 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 59.78% with an average market move of 0.70%.