AWK breaks below 20-day moving average
American Water Works Company Inc (AWK) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
AWK ended the week -0.47% lower at 87.64 after losing $0.58 (-0.66%) today on low volume. Today's closing price of 87.64 marks the lowest close since August 2nd. Trading $0.49 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (AWK as at Aug 10, 2018):
Friday's trading range was $1.16 (1.31%), that's slightly above last trading month's daily average range of $1.11. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being below average.
Prices are trading close to a key support level at 87.52. After having been unable to move lower than 87.47 in the previous session, the share found buyers again around the same price level today at 87.63.
Though the stock is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive. American Water broke below the 20-day moving average at 87.82 today for the first time since August 1st.
Selling could accelerate should prices move below the close-by swing low at 87.47 where further sell stops might get activated. Further buying could move prices higher should the market test July's nearby high at 88.95.