ANSS finds buyers at key support level
ANSYS Inc. (ANSS) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ANSS finished the week 6.28% higher at 269.87 after gaining $3.59 (1.35%) today on low volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ANSS as at May 22, 2020):
Friday's trading range has been $6.28 (2.36%), that's below the last trading month's daily average range of $8.17. 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 264.87 and 274.61 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern, the Bullish Short Candle and the White Candle which are known as bullish patterns.
After trading down to 264.87 earlier during the day, the share bounced off the key technical support level at 265.77 (S1). The failure to close below the support could increase that levels significance as support going forward. ANSYS found buyers again today around 264.87 for the third trading day in a row after having found demand at 266.18 in the previous session and at 265.03 two days ago. The last time this happened on May 12th, ANSS actually lost -2.96% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 274.61 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for ANSYS. Out of 85 times, ANSS closed higher 68.24% 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 70.59% with an average market move of 1.41%.