AOS breaks back below 100-day moving average
A.O. Smith Corporation (AOS) Technical Analysis Report for May 19, 2020 | by Techniquant Editorial Team
AOS finished Tuesday at 41.98 losing $1.52 (-3.49%), notably underperforming the S&P 500 (-1.05%). The bears were in full control today, moving the market lower throughout the whole session. 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 May 19, 2020):
Tuesday's trading range has been $1.42 (3.28%), that's slightly above the last trading month's daily average range of $1.42. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AOS.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 41.86 (S1). A. O. Smith closed back below the 100-day moving average at 42.20. When this moving average was crossed below the last time on May 12th, AOS lost -4.99% on the following trading day. After having been unable to move lower than 41.73 in the previous session, the market found buyers again around the same price level today at 41.96.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
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 low" stand out. Its common bullish interpretation has been confirmed for A. O. Smith. Out of 534 times, AOS closed higher 54.49% 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 59.18% with an average market move of 0.52%.