AXTA finds buyers around 20.99 for the third day in a row
Axalta Coating Systems Ltd. (AXTA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AXTA ended the week 9.34% higher at 21.54 after gaining $0.23 (1.08%) today, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 21.54 marks the highest recorded closing price since March 10th. Trading up to $0.34 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 21.47, the market confirmed its breakout through the previous session high after trading up to $0.12 above it intraday.
Daily Candlestick Chart (AXTA as at May 22, 2020):
Friday's trading range has been $0.60 (2.81%), that's below the last trading month's daily average range of $0.81. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AXTA. Prices continued to consolidate within a tight trading range between 20.61 and 21.71 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar.
Axalta Coating found buyers again today around 20.99 for the third trading day in a row after having found demand at 21.07 in the prior session and at 21.11 two days ago. The last time this happened on March 30th, AXTA actually lost -4.43% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 19.80.
Although 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 21.71 where further buy stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Its common bearish interpretation has been confirmed for Axalta Coating. Out of 33 times, AXTA closed lower 57.58% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 63.64% with an average market move of -1.15%.