AWK pops to highest close ever
American Water Works Company Inc. (AWK) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving higher for the 12th day in a row, AWK ended the week 4.09% higher at 135.78 after gaining $0.49 (0.36%) today, strongly outperforming the S&P 500 (-0.9%). Today's close at 135.78 marks the highest recorded closing price ever. Closing above Thursday's high at 135.53, the stock confirmed its breakout through the previous session high after trading up to $0.88 above it intraday.
Daily Candlestick Chart (AWK as at Jan 24, 2020):
Friday's trading range has been $1.21 (0.89%), that's below the last trading month's daily average range of $1.62. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for AWK.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 125.52. The last time this happened on September 4, 2019, AWK lost -1.72% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for American Water. Out of 500 times, AWK closed higher 51.40% 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 57.60% with an average market move of 0.46%.