APD closes below its opening price unable to hold early session gains
Air Products and Chemicals Inc. (APD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
APD ended Wednesday at 302.46 losing $1.58 (-0.52%), slightly underperforming the S&P 500 (-0.46%). Trading $2.50 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 303.96, the market confirmed its breakout through the prior session low after trading up to $1.59 below it intraday.
Daily Candlestick Chart (APD as at Sep 16, 2020):
Wednesday's trading range has been $4.39 (1.44%), that's below the last trading month's daily average range of $6.54. 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.
Prices are trading close to the key technical support level at 299.82 (S1). The stock ran into sellers again today around 306.76 for the third trading day in a row after having found sellers at 307.93 in the previous session and at 306.80 two days ago. The last time this happened on May 12th, APD lost -1.92% on the following trading day.
Although Air Products is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 307.93 where further buy stops could get triggered. With prices trading close to this year's high at 310.74, upside momentum might speed up should APD be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Air Products. Out of 368 times, APD closed higher 61.41% 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 60.05% with an average market move of 0.91%.