APPN unable to break through key resistance level
Appian Corporation (APPN) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
APPN ended Thursday at 52.74 losing $0.10 (-0.19%), underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (APPN as at Jul 02, 2020):
Thursday's trading range has been $2.05 (3.83%), that's below the last trading month's daily average range of $2.77. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for APPN.
Unable to break through the key technical resistance level at 53.84 (R1), the market closed below it after spiking up to 53.88 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on June 23rd, APPN lost -4.26% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 54.17 where further buy stops could get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Appian. Out of 107 times, APPN closed higher 56.07% 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 52.34% with an average market move of 2.42%.