APH closes above its opening price after recovering from early selling pressure
Amphenol Corporation (APH) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
APH ended the month 10.39% higher at 105.76 after gaining $0.59 (0.56%) today on low volume, slightly underperforming the S&P 500 (0.77%). Trading up to $0.93 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 105.43, Amphenol confirmed its breakout through the prior session high after trading up to $0.44 above it intraday.
Daily Candlestick Chart (APH as at Jul 31, 2020):
Friday's trading range has been $1.83 (1.74%), that's slightly below the last trading month's daily average range of $2.01. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for APH. Prices continued to consolidate within a tight trading range between 104.02 and 106.43 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on July 14th, APH gained 3.12% on the following trading day.
Prices are trading close to the key technical resistance level at 106.19 (R1). The stock was bought again around 104.04 after having seen lows at 104.12, 104.09 and 104.02 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 106.19 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 103.76 where further sell stops could get activated. With prices trading close to this year's high at 110.24, upside momentum might speed up should the share be able to break out to new highs for the year. Further buying could move prices higher should the market test June's close-by high at 108.36.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous three Lows" stand out. Its common bullish interpretation has been confirmed for Amphenol. Out of 9 times, APH closed higher 66.67% 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 55.56% with an average market move of 2.26%.