AYI breaks back above 50-day moving average
Acuity Brands Inc (AYI) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
AYI finished Monday at 89.33 gaining $4.88 (5.78%), significantly outperforming the S&P 500 (1.47%) ahead of Tuesday's earnings report. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 87.82, Acuity Brands confirmed its breakout through the previous session high after trading up to $2.13 above it intraday.
Daily Candlestick Chart (AYI as at Jun 29, 2020):
AYI is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $1.31 per share. The company's last earnings report was released on April 2, 2020, when Acuity Brands Inc reported earnings of $1.84 per share missing market expectations by -2.1%.
Monday's trading range has been $4.59 (5.32%), that's slightly above the last trading month's daily average range of $4.14. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AYI.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, AYI actually lost -2.73% on the following trading day.
The stock managed to close back above the 50-day moving average at 88.67 for the first time since June 23rd. Prices are trading close to the key technical resistance level at 92.25 (R1).
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 91.40 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Acuity Brands. Out of 72 times, AYI closed higher 59.72% 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 58.33% with an average market move of 1.61%.