AMT closes lower for the 2nd day in a row
American Tower Corporation (AMT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AMT finished the month 1.1% higher at 261.39 after losing $1.10 (-0.42%) today on high volume, notably underperforming the S&P 500 (0.77%). Trading $2.52 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 10th, AMT lost -5.21% on the following trading day. 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 Jul 31, 2020):
Friday's trading range has been $7.38 (2.82%), that's above the last trading month's daily average range of $6.25. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AMT.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 256.42 (S1). The stock closed back below the 20-day moving average at 261.53. After having been unable to move lower than 257.53 in the previous session, the share found buyers again around the same price level today at 257.09.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 254.53 where further sell stops could get triggered. As prices are trading close to July's low at 253.15, downside momentum might accelerate should American Tower mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for American Tower. Out of 577 times, AMT closed higher 53.21% 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 58.41% with an average market move of 0.73%.