ERJ closes within previous day's range after lackluster session
Embraer S.A. (ERJ) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
ERJ finished the month 8.93% higher at 5.98 after losing $0.24 (-3.86%) today on low volume, notably underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ERJ as at Jun 30, 2020):
Tuesday's trading range has been $0.15 (2.48%), that's far below the last trading month's daily average range of $0.45. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ERJ.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 6.23 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 5.68 where further sell stops could get triggered. As prices are trading close to June's low at 5.32, downside momentum might accelerate should Embraer S. A. mark new lows for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Embraer S. A.. Out of 722 times, ERJ closed higher 50.42% of the time on the next trading day after the market condition occurred.