ATHM climbs to highest close since December 17, 2018
Autohome Inc. American Depositary Shares each representing one class A. (ATHM) Technical Analysis Report for Jan 10, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ATHM ended Thursday at 82.59 gaining $0.94 (1.15%) on high volume, outperforming the S&P 500 (0.45%). Today's close at 82.59 marks the highest recorded closing price since December 17, 2018. Trading up to $1.68 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 2nd, ATHM actually lost -2.37% on the following trading day. Closing above Wednesday's high at 82.15, the market confirmed its breakout through the previous session high after trading up to $0.92 above it intraday.
Daily Candlestick Chart (ATHM as at Jan 10, 2019):
Thursday's trading range has been $3.75 (4.63%), that's slightly above the last trading month's daily average range of $3.69. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ATHM.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
Prices are trading close to the key technical resistance level at 84.76 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 83.77 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Autohome. Out of 77 times, ATHM closed higher 66.23% 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 57.14% with an average market move of 1.39%.