ARNC pops to highest close since March 26th
Arconic Inc. (ARNC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, ARNC finished the week 53.96% higher at 12.84 after surging $1.56 (13.83%) today on high volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on Wednesday, ARNC gained 7.43% on the following trading day. Today's close at 12.84 marks the highest recorded closing price since March 26th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (ARNC as at May 22, 2020):
Friday's trading range has been $1.51 (12.88%), that's far above the last trading month's daily average range of $0.75. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ARNC.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 11.84 (now S1), which is likely to act as support going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 9.14.
Though the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "7 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Arconic. Out of 7 times, ARNC closed lower 57.14% of the time on the next trading day after the market condition occurred.