AOS closes higher for the 2nd day in a row
A.O. Smith Corp (AOS) Technical Analysis Report for May 17, 2018
Moving higher for the 2nd day in a row, AOS ended Thursday at 63.22 gaining $0.14 (0.22%) on low volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Thursday's trading range was $0.50 (0.79%), that's below last trading month's daily average range of $1.32. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly above average.
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. Despite a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle.
Prices are trading close to the key resistance level at 63.63. After having been unable to move lower than 62.92 in the prior session, the market found buyers again around the same price level today at 62.94.
A. O. Smith shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the nearby swing high at 63.63 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 62.64 where further sell stops might get activated.
While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being very bullish.