AOS closes within previous day's range after lackluster session
A.O. Smith Corporation (AOS) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
AOS finished the week 6.04% higher at 36.85 after edging lower $0.43 (-1.15%) today on low volume, but still significantly outperforming the S&P 500 (-3.37%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AOS as at Mar 27, 2020):
Friday's trading range has been $2.06 (5.68%), that's below the last trading month's daily average range of $2.51. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AOS.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on Wednesday, AOS gained 1.06% on the following trading day.
Prices are trading close to the key technical resistance level at 38.17 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 38.17 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 35.04 where further sell stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for A. O. Smith. Out of 759 times, AOS closed higher 53.36% 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 61.00% with an average market move of 0.62%.