ASB finds buyers at key support level
Associated Banc-Corp (ASB) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ASB finished Thursday at 13.30 gaining $1.35 (11.3%), strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 12.50, the share confirmed its breakout through the previous session high after trading up to $0.91 above it intraday.
Daily Candlestick Chart (ASB as at Mar 26, 2020):
Thursday's trading range has been $1.46 (12.07%), that's above the last trading month's daily average range of $1.16. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ASB.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 11.95 earlier during the day, the stock bounced off the key technical support level at 12.00 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on March 17th, ASB actually lost -13.64% on the following trading day. Prices are trading close to the key technical resistance level at 14.09 (R1).
Although Associated Banc-Corp is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Associated Banc-Corp. Out of 534 times, ASB closed higher 56.74% 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 nine trading days, showing a win rate of 51.50% with an average market move of 0.11%.