APD closes higher for the 2nd day in a row
Air Products and Chemicals Inc. (APD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, APD ended the month -0.08% lower at 241.46 after gaining $2.85 (1.19%) 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 239.93, Air Products confirmed its breakout through the prior session high after trading up to $3.12 above it intraday.
Daily Candlestick Chart (APD as at Jun 30, 2020):
Tuesday's trading range has been $7.05 (2.99%), that's slightly above the last trading month's daily average range of $5.85. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for APD.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
The stock managed to close above the 20-day moving average at 240.28 for the first time since June 10th. When this moving average was crossed above the last time on April 7th, APD gained 6.80% on the following trading day. Unable to break through the key technical resistance level at 242.71 (R1), the share closed below it after spiking up to 243.05 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 235.80 in the previous session, the market found buyers again around the same price level today at 236.00.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Air Products. Out of 66 times, APD closed higher 71.21% 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 54.55% with an average market move of 0.98%.