AVY finds buyers again around 97.19
Avery Dennison Corporation (AVY) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
AVY ended the week -8.1% lower at 98.02 after gaining $0.83 (0.85%) today, underperforming the S&P 500 (1.42%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AVY as at Oct 12, 2018):
Friday's trading range has been $1.75 (1.78%), that's slightly above the last trading month's daily average range of $1.74. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for AVY.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 97.09 (S1). After having been unable to move lower than 97.09 in the previous session, the market found buyers again around the same price level today at 97.19. The last time this happened on October 5th, AVY gained 0.23% 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 107.57.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 97.09 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Avery Dennison. Out of 117 times, AVY closed higher 58.12% 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 58.12% with an average market move of 0.57%.