AYI breaks back above 100-day moving average
Acuity Brands Inc (AYI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AYI finished the month 11.13% higher at 95.74 after gaining $6.41 (7.18%) today on high volume, strongly outperforming the S&P 500 (1.54%) following today's earnings report.
Daily Candlestick Chart (AYI as at Jun 30, 2020):
AYI reported earnings of $1.94 per share today. With analysts having expected an EPS of $1.3, Acuity Brands Inc topped market expectations by 49.2%. 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%.
Tuesday's trading range has been $7.60 (7.6%), that's far above the last trading month's daily average range of $4.37. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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 June 26th, AYI actually gained 5.78% on the following trading day.
The market managed to close back above the 100-day moving average at 92.15 for the first time since June 17th. Prices are trading close to the key technical resistance level at 99.26 (R1).
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Acuity Brands. Out of 30 times, AYI closed higher 66.67% 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 63.33% with an average market move of 0.93%.