APPN dominated by bears dragging the market lower throughout the day
Appian Corporation (APPN) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, APPN ended the week 1.52% higher at 25.98 after tanking $2.04 (-7.28%) today, notably underperforming the S&P 500 (-0.92%). This is the biggest single-day loss in over a month. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 27.64, the market confirmed its breakout through the previous session low after trading up to $2.05 below it intraday.
Daily Candlestick Chart (APPN as at Nov 09, 2018):
Friday's trading range has been $2.11 (7.62%), that's slightly above the last trading month's daily average range of $1.86. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for APPN.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Belt-hold and the Black Candle. The last time a Black Candle showed up on October 29th, APPN actually gained 7.74% on the following trading day.
Prices are trading close to the key technical support level at 24.63 (S1).
Although Appian is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could accelerate should prices move below the nearby swing low at 24.63 where further sell stops might get activated. With prices trading close to this year's low at 22.61, downside momentum could speed up should the share break out to new lows for the year.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Belt-hold" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Appian. Out of 3 times, APPN 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 66.67% with an average market move of 2.42%.