APD closes within previous day's range
Air Products and Chemicals Inc. (APD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
APD finished Thursday at 201.34 gaining $10.19 (5.33%) on low volume, underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (APD as at Mar 26, 2020):
Thursday's trading range has been $12.82 (6.64%), that's slightly below the last trading month's daily average range of $15.05. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for APD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 206.52 (R1). After having been unable to move lower than 189.72 in the prior session, the stock found buyers again around the same price level today at 189.98. The last time this happened on March 18th, APD actually lost -5.22% on the following trading day.
While Air Products is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 204.62 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Air Products. Out of 797 times, APD closed higher 53.20% 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 58.34% with an average market move of 0.62%.