ATGE closes higher for the 6th day in a row
Adtalem Global Education Inc. (ATGE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, ATGE ended Thursday at 25.78 gaining $0.64 (2.55%) on low volume, notably underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ATGE as at Mar 26, 2020):
Thursday's trading range has been $1.40 (5.54%), that's below the last trading month's daily average range of $2.21. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ATGE.
Prices are trading close to the key technical support level at 24.45 (S1). Prices are trading close to the key technical resistance level at 26.47 (R1). After having been unable to move above 26.05 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 26.23. The last time this happened on March 18th, ATGE actually gained 3.68% on the following trading day.
Though Adtalem Global 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 two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Adtalem Global. Out of 24 times, ATGE closed lower 54.17% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.00% with an average market move of -1.29%.