AON closes below its opening price unable to hold early session gains
Aon plc Class A (AON) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AON ended Wednesday at 202.53 gaining $0.53 (0.26%) on low volume, outperforming the S&P 500 (-0.46%). Trading $1.23 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 missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AON as at Sep 16, 2020):
Wednesday's trading range has been $2.29 (1.13%), that's far below the last trading month's daily average range of $4.56. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AON. Prices continued to consolidate within a tight trading range between 201.68 and 204.56 where it has been caught now for the last three trading days.
Aon plc found buyers again today around 202.27 for the third trading day in a row after having found demand at 201.68 in the previous session and at 201.68 two days ago. The last time this happened on May 29th, AON actually lost -0.41% on the following trading day.
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the nearby swing low at 199.50 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Aon plc. Out of 127 times, AON closed higher 53.54% 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 63.78% with an average market move of 1.01%.