AVY pushes through Wednesday's high
Avery Dennison Corporation (AVY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AVY ended Thursday at 101.99 gaining $4.23 (4.33%) on low volume, strongly underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 99.95, the stock confirmed its breakout through the previous session high after trading up to $7.29 above it intraday.
Daily Candlestick Chart (AVY as at Mar 26, 2020):
Thursday's trading range has been $9.11 (9.23%), that's slightly above the last trading month's daily average range of $8.61. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for AVY.
Prices are trading close to the key technical resistance level at 110.43 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 107.96 where further buy stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Avery Dennison. Out of 764 times, AVY closed higher 53.01% 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 0.49%.