ASGN breaks below 200-day moving average for the first time since October 23, 2019
ASGN Incorporated (ASGN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ASGN finished the week -7.91% lower at 63.02 after losing $1.69 (-2.61%) today, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 63.02 marks the lowest recorded closing price since October 23, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 64.28, ASGN Incorporated confirmed its breakout through the previous session low after trading up to $1.41 below it intraday.
Daily Candlestick Chart (ASGN as at Feb 14, 2020):
Friday's trading range has been $2.03 (3.13%), that's above the last trading month's daily average range of $1.48. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ASGN.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 62.73 (S1). The market closed below the 200-day moving average at 63.06 for the first time since October 23, 2019. When this moving average was crossed below the last time on October 22, 2019, ASGN lost -1.73% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally 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 up towards the center of the Bollinger Bands at 68.76.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for ASGN Incorporated. Out of 39 times, ASGN closed higher 53.85% 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 66.67% with an average market move of 3.07%.