AN closes lower for the 4th day in a row
AutoNation Inc. (AN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, AN finished the month 36.62% higher at 51.34 after losing $0.29 (-0.56%) today, significantly underperforming the S&P 500 (0.77%). Closing below Thursday's low at 51.55, the market confirmed its breakout through the prior session low after trading up to $0.68 below it intraday.
Daily Candlestick Chart (AN as at Jul 31, 2020):
Friday's trading range has been $1.37 (2.64%), that's below the last trading month's daily average range of $1.95. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for AN.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for AutoNation. Out of 83 times, AN closed higher 59.04% 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 54.22% with an average market move of 0.91%.