AVY breaks back above 100-day moving average
Avery Dennison Corporation (AVY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AVY ended the month 3.09% higher at 114.09 after gaining $2.15 (1.92%) today, slightly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 113.07, Avery Dennison confirmed its breakout through the prior session high after trading up to $2.02 above it intraday.
Daily Candlestick Chart (AVY as at Jun 30, 2020):
Tuesday's trading range has been $3.36 (3.01%), that's slightly below the last trading month's daily average range of $3.48. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AVY.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 100-day moving average at 112.32 for the first time since June 23rd. Unable to break through the key technical resistance level at 114.84 (R1), the market closed below it after spiking up to 115.09 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on May 27th, AVY lost -1.08% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 115.88 where further buy stops might get triggered. As prices are trading close to June's low at 109.07, downside momentum could speed up should AVY mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Avery Dennison. Out of 54 times, AVY closed higher 61.11% 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 70.37% with an average market move of 1.41%.