ARNC still stuck within tight trading range
Arconic Inc. (ARNC) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, ARNC finished the week 3.8% higher at 19.68 after gaining $0.07 (0.36%) today on low volume, slightly outperforming the S&P 500 (-0.01%). Today's close at 19.68 marks the highest recorded closing price since December 14, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ARNC as at Jan 11, 2019):
Friday's trading range has been $0.44 (2.27%), that's below the last trading month's daily average range of $0.81. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ARNC. Prices continued to consolidate within a tight trading range between 18.78 and 19.82 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on September 17, 2018, ARNC actually gained 1.19% on the following trading day.
Prices are trading close to the key technical resistance level at 20.01 (R1). The stock was sold again around 19.79 after having seen highs at 19.72, 19.82 and 19.76 in the last three trading sessions. Obviously there is something going on at that level.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 19.82 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 18.95 where further sell stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Arconic. Out of 13 times, ARNC closed lower 61.54% of the time on the next trading day after the market condition occurred.