AWK closes within prior day's range after lackluster session
American Water Works Company Inc. (AWK) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
AWK finished Monday at 149.11 losing $0.68 (-0.45%) on low volume, underperforming the S&P 500 (0.27%). 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 Aug 10, 2020):
Monday's trading range has been $2.03 (1.35%), that's below the last trading month's daily average range of $2.77. 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.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on May 1st, AWK actually gained 1.90% 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 OHLC Patterns based market condition "Black Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for American Water. Out of 496 times, AWK closed higher 56.45% 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 64.72% with an average market move of 0.94%.