AMTD closes lower for the 2nd day in a row
TD Ameritrade Holding Corporation (AMTD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AMTD ended the month -1.35% lower at 35.89 after losing $0.46 (-1.27%) today, notably underperforming the S&P 500 (0.77%). Today's close at 35.89 marks the lowest recorded closing price since July 1st. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AMTD as at Jul 31, 2020):
Friday's trading range has been $0.87 (2.4%), that's below the last trading month's daily average range of $1.06. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AMTD.
Prices are trading close to the key technical resistance level at 36.62 (R1).
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 36.92 where further buy stops might get triggered. Further selling could move prices lower should the market test June's close-by low at 34.12.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for TD Ameritrade. Out of 752 times, AMTD closed higher 53.59% 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 56.91% with an average market move of 0.70%.