APPN unable to break through key resistance level
Appian Corporation (APPN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, APPN ended the week 21.41% higher at 62.04 after gaining $1.31 (2.16%) today, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 62.04 marks the highest recorded closing price since February 20th. Trading up to $1.60 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 61.81, the market confirmed its breakout through the prior session high after trading up to $2.88 above it intraday.
Daily Candlestick Chart (APPN as at May 22, 2020):
Friday's trading range has been $4.69 (7.61%), that's far above the last trading month's daily average range of $3.60. 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.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns. The last time a Bullish Spinning Top showed up on April 15th, APPN gained 10.85% on the following trading day.
Unable to break through the key technical resistance level at 63.77 (R1), the share closed below it after spiking up to 64.69 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 49.92.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish High-Wave Candle" stand out. Its common bullish interpretation has been confirmed for Appian. Out of 6 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 83.33% with an average market move of 28.71%.