AMX runs into sellers again around 15.06
America Movil S.A.B. de C.V.n Depository Receipt Series L (AMX) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
AMX finished Tuesday at 14.86 losing $0.13 (-0.87%), underperforming the S&P 500 (-0.34%) ahead of Wednesday's earnings report. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AMX as at Jul 16, 2019):
AMX is set to report earnings on Wednesday. For the upcoming report, analysts expect the company to have earned $0.31 per share. The company's last earnings report was released on April 29, 2019, when America Movil S. A. B. de C. V. n Depository Receipt Series L reported earnings of $0.31 per share missing market expectations by -8.8%.
Tuesday's trading range has been $0.30 (2.0%), that's slightly below the last trading month's daily average range of $0.33. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AMX.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 14.76 earlier during the day, the share bounced off the key technical support level at 14.85 (S1). The failure to close below the support could increase that levels significance as support going forward. America Movil closed back below the 20-day moving average at 14.89. After having been unable to move above 15.01 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 15.06. The last time this happened on July 12th, AMX actually gained 2.53% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day before Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for America Movil. Out of 25 times, AMX closed lower 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 60.00% with an average market move of -2.27%.