APPN finds buyers again around 47.91
Appian Corporation (APPN) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
APPN finished the week -8.36% lower at 48.65 after gaining $0.11 (0.23%) today, notably outperforming the S&P 500 (-0.9%). Trading $1.34 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (APPN as at Jan 24, 2020):
Friday's trading range has been $2.54 (5.17%), that's slightly above the last trading month's daily average range of $2.22. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for APPN.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 47.91 earlier during the day, the stock bounced off the key technical support level at 48.28 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 47.70 in the previous session, Appian found buyers again around the same price level today at 47.91. The last time this happened on Wednesday, APPN actually lost -2.63% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could speed up should prices move below the nearby swing low at 47.70 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for Appian. Out of 62 times, APPN closed lower 58.06% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after eight trading days, showing a win rate of 61.29% with an average market move of -0.87%.