AON closes within previous day's range after lackluster session
Aon plc Class A (AON) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
AON finished Thursday at 165.70 gaining $2.55 (1.56%), notably underperforming the S&P 500 (6.24%). Trading up to $2.39 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 (AON as at Mar 26, 2020):
Thursday's trading range has been $5.95 (3.63%), that's far below the last trading month's daily average range of $12.41. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for AON.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Aon plc ran into sellers again today around 167.44 for the third trading day in a row after having found sellers at 167.99 in the previous session and at 167.55 two days ago. The last time this happened on Monday, AON actually gained 14.13% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 167.99 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Aon plc. Out of 551 times, AON closed higher 54.63% 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 58.08% with an average market move of 0.56%.