AOS dominated by bulls lifting the market higher throughout the day
A.O. Smith Corporation (AOS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AOS ended the month -0.8% lower at 47.12 after gaining $0.68 (1.46%) today, slightly underperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 46.68, the stock confirmed its breakout through the prior session high after trading up to $0.76 above it intraday.
Daily Candlestick Chart (AOS as at Jun 30, 2020):
Tuesday's trading range has been $1.30 (2.81%), that's slightly below the last trading month's daily average range of $1.45. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AOS.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 47.86 (R1).
Though the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 47.86 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for A. O. Smith. Out of 332 times, AOS closed higher 55.42% 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 62.95% with an average market move of 0.93%.