AOS closes higher for the 3rd day in a row
A.O. Smith Corporation (AOS) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AOS finished Wednesday at 51.42 gaining $0.53 (1.04%), outperforming the S&P 500 (0.3%). Today's close at 51.42 marks the highest recorded closing price since October 8, 2018.
Daily Candlestick Chart (AOS as at Feb 13, 2019):
Wednesday's trading range has been $0.70 (1.37%), that's below the last trading month's daily average range of $1.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AOS.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on January 8th, AOS gained 1.39% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 48.34.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for A. O. Smith. Out of 172 times, AOS closed higher 56.98% 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 59.88% with an average market move of 0.88%.