AWK finds buyers again around 142.59
American Water Works Company Inc. (AWK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AWK finished Wednesday at 142.77 losing $0.82 (-0.57%), slightly underperforming the S&P 500 (-0.46%). Trading $1.66 higher after the open, American Water was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 142.85, the market confirmed its breakout through the previous session low after trading up to $0.26 below it intraday.
Daily Candlestick Chart (AWK as at Sep 16, 2020):
Wednesday's trading range has been $2.92 (2.03%), that's slightly above the last trading month's daily average range of $2.66. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AWK.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar.
After trading as low as 142.59 during the day, the share found support at the 50-day moving average at 142.64. The last time this happened on September 1st, AWK gained 2.84% on the following trading day. Unable to break through the key technical resistance level at 145.40 (R1), the stock closed below it after spiking up to 145.51 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 142.85 in the prior session, AWK found buyers again around the same price level today at 142.59.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 140.28 where further sell stops could get triggered. As prices are trading close to September's high at 146.30, upside momentum might accelerate should American Water mark new highs for the month. Further selling could move prices lower should the market test August's close-by low at 138.85.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for American Water. Out of 386 times, AWK closed higher 54.92% 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 66.06% with an average market move of 1.28%.