ANSS dominated by bulls lifting the market higher throughout the day
ANSYS Inc. (ANSS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ANSS finished Thursday at 230.37 gaining $18.06 (8.51%) on low volume, strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 221.84, the share confirmed its breakout through the prior session high after trading up to $10.52 above it intraday.
Daily Candlestick Chart (ANSS as at Mar 26, 2020):
Thursday's trading range has been $19.85 (9.26%), that's above the last trading month's daily average range of $16.39. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for ANSS.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 17th, ANSS actually lost -5.39% on the following trading day.
The stock managed to close above the 20-day moving average at 228.48 for the first time since February 21st. Prices are trading close to the key technical resistance level at 235.50 (R1).
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's low at 200.07, downside momentum might speed up should ANSYS break out to new lows for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for ANSYS. Out of 306 times, ANSS closed higher 51.96% 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 61.11% with an average market move of 0.67%.