ARW breaks above 200-day moving average for the first time since June 9th
Arrow Electronics Inc. (ARW) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ARW finished the month 4.27% higher at 71.62 after surging $1.93 (2.77%) today on high volume, significantly outperforming the S&P 500 (0.77%). 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 May 26th, ARW gained 1.04% on the following trading day. Today's close at 71.62 marks the highest recorded closing price since June 10th. Closing above Thursday's high at 70.03, Arrow Electronics confirmed its breakout through the previous session high after trading up to $1.70 above it intraday.
Daily Candlestick Chart (ARW as at Jul 31, 2020):
Friday's trading range has been $2.94 (4.22%), that's far above the last trading month's daily average range of $1.76. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ARW.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 200-day moving average at 70.77 for the first time since June 9th. Prices are trading close to the key technical resistance level at 72.11 (R1).
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 though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 67.63.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Arrow Electronics. Out of 110 times, ARW closed higher 55.45% 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 two trading days, showing a win rate of 55.45% with an average market move of 0.39%.