APPN runs into sellers around 51.48 for the third day in a row
Appian Corporation (APPN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, APPN finished the month -0.74% lower at 50.87 after edging lower $0.17 (-0.33%) today, strongly underperforming the S&P 500 (0.77%). 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 31, 2020):
Friday's trading range has been $1.92 (3.73%), that's below the last trading month's daily average range of $2.49. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for APPN. Prices continued to consolidate within a tight trading range between 48.35 and 51.52 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on July 23rd, APPN lost -2.53% on the following trading day.
Prices are trading close to the key technical resistance level at 51.52 (R1). Appian ran into sellers again today around 51.48 for the third trading day in a row after having found sellers at 51.47 in the prior session and at 51.52 two days ago.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the nearby swing high at 51.52 where further buy stops might get triggered. As prices are trading close to July's high at 53.99, upside momentum could speed up should the stock mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Appian. Out of 87 times, APPN closed higher 63.22% 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 58.62% with an average market move of 3.12%.