AWK closes higher for the 3rd day in a row
American Water Works Company Inc. (AWK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AWK ended the week 2.51% higher at 120.71 after edging higher $0.09 (0.07%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.86 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AWK as at May 22, 2020):
Friday's trading range has been $1.73 (1.44%), that's far below the last trading month's daily average range of $3.33. Weekly volatility is also lower, being slightly below 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 119.30 and 123.26 where it has been caught now for the whole last trading week.
The share managed to close back above the 20-day moving average at 120.52. When this moving average was crossed above the last time on Monday, AWK actually lost -1.91% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 123.26 where further buy stops could get activated. As prices are trading close to May's high at 124.68, upside momentum might accelerate should the stock mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for American Water. Out of 170 times, AWK closed higher 55.88% 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 62.94% with an average market move of 0.73%.