AWK breaks back above 100-day moving average
American Water Works Company Inc. (AWK) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AWK ended the month 1.31% higher at 128.66 after surging $3.29 (2.62%) today, strongly outperforming the S&P 500 (1.54%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on May 18th, AWK actually lost -1.91% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (AWK as at Jun 30, 2020):
Tuesday's trading range has been $3.96 (3.16%), that's above the last trading month's daily average range of $3.43. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AWK.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
American Water managed to close back above the 100-day moving average at 126.07 for the first time since June 22nd.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to June's high at 134.26, upside momentum might accelerate should the market mark new highs for the month.
Among the 12 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 169 times, AWK closed higher 55.62% 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 63.91% with an average market move of 0.81%.