AYI closes lower for the 2nd day in a row
Acuity Brands Inc (AYI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AYI finished the month 3.51% higher at 99.10 after losing $1.94 (-1.92%) today, notably underperforming the S&P 500 (0.77%). Closing below Thursday's low at 99.41, the stock confirmed its breakout through the prior session low after trading up to $1.52 below it intraday.
Daily Candlestick Chart (AYI as at Jul 31, 2020):
Friday's trading range has been $2.72 (2.71%), that's slightly below the last trading month's daily average range of $2.74. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AYI.
Prices broke below the key technical support level at 100.14 (now R1), which is likely to act as resistance going forward. The last time this happened on July 7th, AYI actually gained 0.92% on the following trading day.
Acuity Brands shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four 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 261 times, AYI closed higher 55.94% 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 58.24% with an average market move of 1.44%.