APD finds support at 20-day moving average
Air Products and Chemicals Inc. (APD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
APD ended the month 18.71% higher at 286.63 after gaining $1.82 (0.64%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $4.56 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (APD as at Jul 31, 2020):
Friday's trading range has been $5.68 (1.99%), that's slightly below the last trading month's daily average range of $6.49. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for APD.
One bullish candlestick pattern matches today's price action, the Takuri Line.
After trading as low as 281.06 during the day, Air Products found support at the 20-day moving average at 282.65. The last time this happened on August 13, 2019, APD actually lost -3.08% on the following trading day. After having been unable to move above 287.41 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 286.74.
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Air Products. Out of 548 times, APD closed higher 54.74% 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 55.11% with an average market move of 0.47%.