AXTA closes higher for the 6th day in a row
Axalta Coating Systems Ltd. (AXTA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, AXTA ended Wednesday at 24.69 gaining $0.31 (1.27%), strongly outperforming the S&P 500 (-0.46%). Today's close at 24.69 marks the highest recorded closing price since June 8th. Closing above Tuesday's high at 24.47, Axalta Coating confirmed its breakout through the prior session high after trading up to $0.67 above it intraday.
Daily Candlestick Chart (AXTA as at Sep 16, 2020):
Wednesday's trading range has been $0.74 (3.03%), that's slightly above the last trading month's daily average range of $0.67. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AXTA.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on Monday, AXTA actually gained 0.79% on the following trading day.
Prices are trading close to the key technical support level at 24.16 (S1).
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 Price Action based market condition "6 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Axalta Coating. Out of 12 times, AXTA closed lower 83.33% 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 75.00% with an average market move of -2.50%.