AYI closes lower for the 2nd day in a row
Acuity Brands Inc (AYI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AYI ended the week -0.68% lower at 116.90 after losing $1.38 (-1.17%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 116.90 marks the lowest recorded closing price since October 2, 2019. Closing below Thursday's low at 117.49, the stock confirmed its breakout through the previous session low after trading up to $2.89 below it intraday.
Daily Candlestick Chart (AYI as at Feb 14, 2020):
Friday's trading range has been $4.23 (3.56%), that's far above the last trading month's daily average range of $2.42. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for AYI.
One bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern.
Prices are trading close to the key technical resistance level at 118.29 (R1). After having been unable to move above 119.24 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 118.83. The last time this happened on Wednesday, AYI lost -0.78% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Acuity Brands. Out of 262 times, AYI closed higher 56.49% 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 57.63% with an average market move of 1.46%.