AON closes lower for the 4th day in a row
Aon plc Class A (AON) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, AON ended the week 0.16% higher at 191.97 after losing $1.36 (-0.7%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 192.10, the stock confirmed its breakout through the previous session low after trading up to $1.38 below it intraday.
Daily Candlestick Chart (AON as at May 22, 2020):
Friday's trading range has been $2.68 (1.39%), that's far below the last trading month's daily average range of $5.28. 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 AON.
Prices are trading close to the key technical resistance level at 193.98 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could accelerate should prices move below the close-by swing low at 186.23 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Aon plc. Out of 612 times, AON closed higher 56.54% 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 60.13% with an average market move of 0.77%.