AOS unable to break through key resistance level
A.O. Smith Corporation (AOS) Technical Analysis Report for Apr 16, 2018 | by Techniquant Editorial Team
AOS finished Monday at 64.74 gaining $0.95 (1.49%) on high volume. Today's closing price of 64.74 marks the highest close since April 5th. Trading up to $0.47 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Friday's high at 64.52, A. O. Smith confirms its breakout through the prior session's high having traded $0.51 above it intraday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (AOS as at Apr 16, 2018):
Monday's trading range was $1.03 (1.6%), that's below last trading month's daily average range of $1.47. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly below average. Prices continued to consolidate within a tight trading range between 63.46 and 65.04 which it has been in now for the last trading week.
Unable to break through the key technical resistance level at 64.89, the share closed below it after spiking as high as 65.03 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. After trading as low as 64.00 during the day, the stock found support at the 50-day moving average at 64.02.
AOS shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish. The market managed to break above the 50-day moving average at 64.02 today for the first time since April 10th.
Selling might speed up should prices move below the nearby swing low at 63.48 where further sell stops could get triggered. Further buying might move prices higher should the market test March's close-by high at 66.85.