AWK finds buyers around 96.95 for the third day in a row
American Water Works Company Inc. (AWK) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
AWK ended Wednesday at 97.44 losing $0.23 (-0.24%), underperforming the S&P 500 (0.3%). Trading up to $0.35 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AWK as at Feb 13, 2019):
Wednesday's trading range has been $0.79 (0.81%), that's far below the last trading month's daily average range of $1.47. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AWK. Prices continued to consolidate within a tight trading range between 96.83 and 98.24 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on January 22nd, AWK gained 1.58% on the following trading day.
Prices are trading close to the key technical resistance level at 98.14 (R1). American Water found buyers again today around 96.95 for the third trading day in a row after having found demand at 96.83 in the prior session and at 97.06 two days ago.
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 98.24 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 96.83 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for American Water. Out of 135 times, AWK closed higher 54.07% 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 68.89% with an average market move of 0.79%.