AWK breaks back above 20-day moving average
American Water Works Company Inc. (AWK) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
AWK finished the week 2.55% higher at 89.61 after gaining $0.72 (0.81%) today, notably outperforming the S&P 500 (-0.92%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AWK as at Nov 09, 2018):
Friday's trading range has been $1.69 (1.91%), that's slightly below the last trading month's daily average range of $1.74. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AWK.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 20-day moving average at 89.58. Unable to break through the key technical resistance level at 89.78 (R1), the market closed below it after spiking up to 89.96 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 88.32 in the previous session, the share found buyers again around the same price level today at 88.27. The last time this happened on October 25th, AWK actually lost -1.89% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 90.36 where further buy stops might get triggered. With prices trading close to this year's high at 92.79, upside momentum could accelerate should American Water be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for American Water. Out of 583 times, AWK closed higher 56.78% 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 63.98% with an average market move of 0.84%.