AWI finds buyers again around 65.60
Armstrong World Industries Inc (AWI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AWI ended Wednesday at 66.68 gaining $0.55 (0.83%) on high volume, notably outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AWI as at Sep 16, 2020):
Wednesday's trading range has been $2.26 (3.42%), that's above the last trading month's daily average range of $1.77. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AWI.
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 65.56 (S1). After having been unable to move lower than 65.56 in the previous session, the stock found buyers again around the same price level today at 65.60. The last time this happened on Monday, AWI actually lost -2.88% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 72.01.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 65.56 where further sell stops could 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 Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Armstrong World. Out of 706 times, AWI closed higher 52.12% 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 57.79% with an average market move of 0.67%.