ARNC dominated by bears dragging the market lower throughout the day
Arconic Inc. (ARNC) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
ARNC ended Wednesday at 30.32 losing $0.38 (-1.24%), strongly underperforming the S&P 500 (0.63%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ARNC as at Dec 04, 2019):
Wednesday's trading range has been $0.62 (2.01%), that's above the last trading month's daily average range of $0.50. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ARNC.
One bearish candlestick pattern matches today's price action, the Black Candle.
Arconic closed below the 20-day moving average at 30.35 for the first time since October 9th. When this moving average was crossed below the last time on September 25th, ARNC lost -0.72% on the following trading day.
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.
Selling could accelerate should prices move below the nearby swing low at 30.01 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Arconic. Out of 141 times, ARNC closed higher 52.48% 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 four trading days, showing a win rate of 54.61% with an average market move of 0.36%.