AON fails to close above 20-day moving average
Aon plc Class A (AON) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AON finished the week -0.47% lower at 191.10 after gaining $2.21 (1.17%) today, slightly outperforming the S&P 500 (1.09%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (AON as at Oct 11, 2019):
Friday's trading range has been $2.44 (1.28%), that's below the last trading month's daily average range of $3.23. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AON.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
The stock managed to close back above the 100-day moving average at 191.03 for the first time since October 4th. After spiking up to 192.73 during the day, Aon plc found resistance at the 20-day moving average at 191.31. The last time this happened on March 14th, AON actually gained 0.84% on the following trading day.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to October's high at 195.30, upside momentum might accelerate should the market mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Aon plc. Out of 91 times, AON closed higher 59.34% 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 59.34% with an average market move of 0.83%.