ANSS closes below its opening price unable to hold early session gains
ANSYS Inc. (ANSS) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
ANSS ended the week 2.61% higher at 277.34 after edging lower $0.37 (-0.13%) today, but still outperforming the S&P 500 (-0.9%). Trading $1.91 higher after the open, ANSYS was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, ANSS actually gained 1.08% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ANSS as at Jan 24, 2020):
Friday's trading range has been $4.85 (1.74%), that's far above the last trading month's daily average range of $3.54. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for ANSS.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 263.54.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 273.58 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for ANSYS. Out of 223 times, ANSS closed higher 56.50% 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 60.54% with an average market move of 1.17%.