ARNC closes above its opening price after recovering from early selling pressure
Arconic Inc. (ARNC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
ARNC finished the month 16.94% higher at 16.29 after edging higher $0.01 (0.06%) today, underperforming the S&P 500 (0.77%). Trading up to $0.59 lower after the open, Arconic managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ARNC as at Jul 31, 2020):
Friday's trading range has been $0.79 (4.91%), that's slightly above the last trading month's daily average range of $0.79. 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 slightly lower than usual for ARNC.
One bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on March 18th, ARNC gained 1.08% on the following trading day.
After trading down to 15.51 earlier during the day, the stock bounced off the key technical support level at 15.91 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move above 16.34 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 16.30.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Arconic. Out of 42 times, ARNC closed higher 52.38% 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 69.05% with an average market move of 1.79%.