AN runs into sellers again around 32.58
AutoNation Inc. (AN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, AN finished Thursday at 31.35 gaining $0.10 (0.32%), notably underperforming the S&P 500 (6.24%). Trading $0.76 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 March 3rd, AN actually gained 3.19% on the following trading day. 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 (AN as at Mar 26, 2020):
Thursday's trading range has been $1.68 (5.28%), that's below the last trading month's daily average range of $2.85. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for AN.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 33.00 (R1). After having been unable to move above 33.00 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 32.58.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 33.00 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for AutoNation. Out of 19 times, AN closed higher 52.63% of the time on the next trading day after the market condition occurred.