APH closes above its opening price after recovering from early selling pressure
Amphenol Corporation (APH) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
APH ended the week 10.31% higher at 90.80 after edging higher $0.59 (0.65%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.93 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (APH as at May 22, 2020):
Friday's trading range has been $1.70 (1.89%), that's below the last trading month's daily average range of $2.33. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for APH. Prices continued to consolidate within a tight trading range between 89.20 and 92.05 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
Prices are trading close to the key technical support level at 89.19 (S1). After having been unable to move above 91.24 in the prior session, Amphenol ran into sellers again around the same price level today, failing to move higher than 90.90. The last time this happened on May 15th, APH actually gained 7.45% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 92.05 where further buy stops could get activated. Further buying might move prices higher should the market test April's nearby high at 92.74.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Amphenol. Out of 568 times, APH closed higher 56.69% 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 60.92% with an average market move of 0.76%.