AON dominated by bulls lifting the market higher throughout the day
Aon plc Class A (AON) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
AON finished the month -2.21% lower at 192.60 after gaining $4.38 (2.33%) today, outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 191.89, the stock confirmed its breakout through the previous session high after trading up to $1.36 above it intraday.
Daily Candlestick Chart (AON as at Jun 30, 2020):
Tuesday's trading range has been $7.10 (3.78%), that's above the last trading month's daily average range of $5.64. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AON.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Despite a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on March 11th, AON actually lost -6.21% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 100-day moving average at 190.85. Prices are trading close to the key technical resistance level at 195.00 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 196.41 where further buy stops could get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Aon plc. Out of 52 times, AON closed higher 61.54% 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 four trading days, showing a win rate of 59.62% with an average market move of 0.20%.