ANSS breaks back below 20-day moving average
ANSYS Inc. (ANSS) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
ANSS finished the week 4.65% higher at 223.02 after losing $7.35 (-3.19%) today on low volume, but still slightly outperforming the S&P 500 (-3.37%). Trading $7.10 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ANSS as at Mar 27, 2020):
Friday's trading range has been $12.06 (5.32%), that's below the last trading month's daily average range of $16.38. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for ANSS. Prices continued to consolidate within a tight trading range between 204.28 and 233.63 where it has been caught now for the whole last trading week.
After moving higher in the previous session, ANSYS closed lower but above the prior day's open today, forming a bearish Harami Candle.
Prices are trading close to the key technical support level at 216.70 (S1). The share closed back below the 20-day moving average at 227.52. After having been unable to move above 232.39 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 233.63. The last time this happened on Wednesday, ANSS actually gained 8.51% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could speed up should prices move below the nearby swing low at 208.37 where further sell stops might get activated. With prices trading close to this year's low at 200.07, downside momentum could accelerate should ANSS break out to new lows for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for ANSYS. Out of 59 times, ANSS closed higher 62.71% of the time on the next trading day after the market condition occurred.