AYI pushes through key technical resistance level
Acuity Brands Inc (AYI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
AYI ended Thursday at 85.64 gaining $4.47 (5.51%), underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AYI as at Mar 26, 2020):
Thursday's trading range has been $7.03 (8.63%), that's slightly below the last trading month's daily average range of $7.59. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AYI.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 83.68 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, AYI actually lost -3.40% on the following trading day. Prices are trading close to the key technical resistance level at 92.25 (R1). After having been unable to move lower than 78.16 in the prior session, Acuity Brands found buyers again around the same price level today at 79.31.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Acuity Brands. Out of 545 times, AYI closed higher 51.93% 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 57.25% with an average market move of 0.75%.