APO closes within prior day's range after lackluster session
Apollo Global Management LLC Class A Representing Class A Limitied Liability Company Interests (APO) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
APO ended the week 32.12% higher at 35.46 after losing $2.24 (-5.94%) today on low volume, strongly underperforming the S&P 500 (-3.37%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (APO as at Mar 27, 2020):
Friday's trading range has been $2.50 (6.98%), that's below the last trading month's daily average range of $4.24. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for APO.
After moving higher in the previous session, the stock closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns.
After trading as low as 33.90 during the day, the share found support at the 20-day moving average at 34.50. Unable to break through the key technical resistance level at 36.34 (R1), the market closed below it after spiking up to 36.40 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on Wednesday, APO actually gained 8.68% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Apollo Global. Out of 69 times, APO closed higher 59.42% 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 57.97% with an average market move of 1.66%.