APPN closes within previous day's range after lackluster session
Appian Corporation (APPN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, APPN ended Wednesday at 60.55 edging higher $0.13 (0.22%), outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (APPN as at Sep 16, 2020):
Wednesday's trading range has been $2.28 (3.79%), that's below the last trading month's daily average range of $2.73. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for APPN.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on August 27th, APPN gained 3.75% on the following trading day.
Prices are trading close to the key technical support level at 59.40 (S1). After having been unable to move lower than 59.55 in the previous session, the share found buyers again around the same price level today at 59.53.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 64.72, upside momentum could speed up should Appian be able to break out to new highs for the year. As prices are trading close to September's high at 63.87, upside momentum might accelerate should the stock mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Appian. Out of 55 times, APPN closed higher 61.82% 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 52.73% with an average market move of 2.63%.