AVAV dominated by bulls lifting the market higher throughout the day
AeroVironment Inc. (AVAV) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
AVAV finished Thursday at 58.04 surging $5.97 (11.47%) on low volume, strongly outperforming the S&P 500 (6.24%). This is the biggest single-day gain in over 10 months. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 55.34, AeroVironment confirmed its breakout through the previous session high after trading up to $3.15 above it intraday.
Daily Candlestick Chart (AVAV as at Mar 26, 2020):
Thursday's trading range has been $6.32 (11.98%), that's above the last trading month's daily average range of $4.93. 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 AVAV. Prices continued to consolidate within a tight trading range between 50.78 and 59.13 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 20-day moving average at 54.46 for the first time since March 19th. When this moving average was crossed above the last time on March 19th, AVAV actually lost -6.87% on the following trading day. Prices are trading close to the key technical resistance level at 59.13 (R1). The stock found buyers again today around 52.17 for the third trading day in a row after having found demand at 51.26 in the prior session and at 52.03 two days ago.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
As prices are trading close to March's high at 61.28, upside momentum could speed up should AVAV mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for AeroVironment. Out of 120 times, AVAV closed lower 56.67% of the time on the next trading day after the market condition occurred.