AXTA closes within prior day's range after lackluster session
Axalta Coating Systems Ltd. (AXTA) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
AXTA finished Monday at 23.30 gaining $0.19 (0.82%), slightly outperforming the S&P 500 (0.38%). 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 (AXTA as at Jun 01, 2020):
Monday's trading range has been $0.51 (2.21%), that's below the last trading month's daily average range of $0.80. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AXTA.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on May 21st, AXTA actually gained 1.08% on the following trading day.
After having been unable to move above 23.46 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 23.55.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 24.16 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 22.67 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Axalta Coating. Out of 372 times, AXTA closed higher 50.81% 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 six trading days, showing a win rate of 54.30% with an average market move of 0.34%.