AOS snaps to lowest close since February 2, 2017
A.O. Smith Corporation (AOS) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, AOS ended the week -7.32% lower at 47.76 after edging lower $0.11 (-0.23%) today, significantly underperforming the S&P 500 (1.42%). Today's close at 47.76 marks the lowest recorded closing price since February 2, 2017. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AOS as at Oct 12, 2018):
Friday's trading range has been $1.59 (3.27%), that's above the last trading month's daily average range of $1.31. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for AOS.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on Tuesday, AOS actually lost -2.75% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
2017's low at 46.44 is within reach and we could see further downside momentum should the market break out beyond.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for A. O. Smith. Out of 49 times, AOS closed higher 71.43% 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 63.27% with an average market move of 2.35%.