AON closes lower for the 2nd day in a row
Aon plc Class A (AON) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AON finished Monday at 196.14 edging lower $0.81 (-0.41%), underperforming the S&P 500 (0.38%). Trading $1.28 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 failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AON as at Jun 01, 2020):
Monday's trading range has been $2.89 (1.47%), that's below the last trading month's daily average range of $4.65. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AON. Prices continued to consolidate within a tight trading range between 194.67 and 201.53 where it has been caught now for the whole last trading week.
One neutral candlestick pattern matches today's price action, the Doji.
Prices are trading close to the key technical support level at 194.32 (S1). The share closed back below the 200-day moving average at 196.28 for the first time since May 26th. After having been unable to move lower than 195.20 in the previous session, the stock found buyers again around the same price level today at 194.67. The last time this happened on May 28th, AON actually lost -0.88% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 201.53 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 190.69 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Aon plc. Out of 615 times, AON closed higher 56.59% 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 60.00% with an average market move of 0.78%.