AYI breaks below key technical support level
Acuity Brands Inc (AYI) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
AYI finished Wednesday at 132.05 losing $1.74 (-1.3%) on high volume, notably underperforming the S&P 500 (0.3%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AYI as at Feb 13, 2019):
Wednesday's trading range has been $3.76 (2.8%), that's above the last trading month's daily average range of $3.11. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AYI.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on January 30th, AYI actually gained 2.04% on the following trading day.
Prices broke below the key technical support level at 133.69 (now R1), which is likely to act as resistance going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 121.98.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Acuity Brands. Out of 180 times, AYI closed higher 51.67% 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 60.00% with an average market move of 1.57%.