AMT closes within previous day's range
American Tower Corporation (AMT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AMT finished Wednesday at 263.29 edging lower $0.46 (-0.17%) on high volume, but still slightly outperforming the S&P 500 (-0.46%). Trading $3.66 higher after the open, American Tower was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AMT as at Sep 16, 2020):
Wednesday's trading range has been $5.86 (2.21%), that's slightly above the last trading month's daily average range of $5.68. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AMT.
Prices are trading close to the key technical support level at 259.47 (S1). Unable to break through the key technical resistance level at 267.60 (R1), the stock closed below it after spiking up to 268.66 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on Monday, AMT actually gained 3.88% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 250.65.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's high at 272.20, upside momentum could speed up should the share be able to break out to new highs for the year.
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. Its common bullish interpretation has been confirmed for American Tower. Out of 171 times, AMT closed higher 52.63% 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 61.40% with an average market move of 0.30%.