AYI dominated by bulls lifting the market higher throughout the day
Acuity Brands Inc (AYI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, AYI finished Wednesday at 106.88 gaining $1.78 (1.69%) on high volume, notably outperforming the S&P 500 (-0.46%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 105.63, the share confirmed its breakout through the prior session high after trading up to $2.26 above it intraday.
Daily Candlestick Chart (AYI as at Sep 16, 2020):
Wednesday's trading range has been $4.38 (4.23%), that's far above the last trading month's daily average range of $2.58. 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.
Despite a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns.
Unable to break through the key technical resistance level at 107.66 (R1), the stock closed below it after spiking up to 107.89 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
While Acuity Brands is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish. With its 50-day moving average crossing above its 200-day moving average, AYI has entered a so-called "Golden Cross" for the first time since January 8th. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon. When the last "Golden Cross" happened on January 8th, AYI actually lost -13.76% on the following trading day.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Golden Cross" stand out. Its common bullish interpretation has been confirmed for Acuity Brands. Out of 7 times, AYI closed higher 85.71% of the time on the next trading day after the market condition occurred.