Allison Transmission Holdings (ALSN) Technical Analysis 17/08/2017

Allison Transmission Holdings, Inc. (NYSE:ALSN) fell by -4.22% in Wednesday’s trading from $37.18 to $35.61 and has now fallen 3 consecutive sessions. The price has fallen in 7 of the last 10 days and is down by -6.12% over the same course of time. Volume has increased in Wednesday’s trading by 1.32 million shares, but on a weak note. This is may be an early warning and the risk will be increased slightly for the next couple of days. In total, 2.41 M shares exchanged hands for about $85.77 million.

Inside ALSN’s Recent Trend

Allison Transmission Holdings, Inc. (ALSN) has broken the horizontal trend down. Breaks like this are often followed by swift and strong movements, and any correction down to the breakline at approximately $36.39 is considered to be a second chance to get out before further fall. It is, however, important to note that false breaks may appear and that the price may move back into the horizontal trend. A break on increasing volume is considered to be more significant and reliable than breaks on low volume.

Allison Transmission Holdings, Inc. Technical Signals

ALSN has witnessed its long term and short term MA triggering a sell signal. Many traders watch for long-term averages to cross above short-term averages to signal the beginning of a downtrend. Upon corrections, the price will meet resistance from the averages between $37.13 and $37.64. A buy signal will be generated if it crosses above any of these levels. Its pivot point high generated sell signal on Monday August 14, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity. Volume up and price depreciating is getting our attention as this movement is seen as bearish sign.

Allison Transmission Holdings, Inc. (NYSE:ALSN) Support And Resistance Levels

There is no support from accumulated volume below today’s level and given the right condition the stock may perform very badly in the next couple of days. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $37.10, $37.15 and $37.79.

Accumulated volume is going to prevent the price from rising further at $37.10 and this action will lead the price to take a temporary pause or stay muted for a few days.

Allison Transmission Holdings, Inc. (ALSN) Risk Assessment

The number of shares changed hands in the stock is good, indicating the interest and low risk associated with it. In the most recent session, the stock price hovered around $1.75 (4.92%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 2.37%.


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