APH dominated by bears dragging the market lower throughout the day
Amphenol Corporation (APH) Technical Analysis Report for Sep 21, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, APH finished Monday at 103.49 tanking $5.38 (-4.94%), strongly underperforming the S&P 500 (-1.16%). This is the biggest single-day loss in over three months. The last time we've seen such an unusually strong single-day loss on September 8th, APH actually gained 1.64% on the following trading day. Today's close at 103.49 marks the lowest recorded closing price since July 22nd. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (APH as at Sep 21, 2020):
Monday's trading range has been $4.77 (4.45%), that's far above the last trading month's daily average range of $2.56. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for APH.
One bearish candlestick pattern matches today's price action, the Black Candle.
The market closed back below the 50-day moving average at 106.66 for the first time since September 11th.
Crossing below the lower Bollinger Band for the first time since September 11th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 108.11 or signal the beginning of a strong momentum breakout leading to even lower prices.
Although Amphenol 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 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Amphenol. Out of 145 times, APH closed higher 54.48% 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 64.83% with an average market move of 1.03%.