ANSS stuck within tight trading range
ANSYS Inc. (ANSS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
ANSS finished the week 2.51% higher at 291.98 after edging higher $0.30 (0.1%) today on high volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ANSS as at Feb 14, 2020):
Friday's trading range has been $2.45 (0.84%), that's far below the last trading month's daily average range of $5.47. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ANSS. Prices continued to consolidate within a tight trading range between 288.43 and 293.44 where it has been caught now for the last three trading days.
Prices are trading close to the key technical resistance level at 293.43 (R1). The stock ran into sellers again today around 292.94 for the third trading day in a row after having found sellers at 293.44 in the prior session and at 292.89 two days ago. The last time this happened on Monday, ANSS actually gained 0.62% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 293.44 where further buy stops might get activated.
Among the four 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 ANSYS. Out of 789 times, ANSS closed higher 53.23% 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 60.08% with an average market move of 0.98%.