• Return to Headlines

Possible Bearish Inside Day Candle Pattern Detected for Ambac Financial (NASDAQ:AMBC)

By James Quinn

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Ambac Financial (NASDAQ:AMBC) based on the price action in the company's shares. Yesterday's price range of $12.10 and $12.86 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Ambac Financial may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Ambac Financial Group, Inc., a holding company provides financial guarantee, insurance, and financial management services. The Company, through its subsidiaries, insures municipal and structured finance obligations. Ambac provides investment agreements, interest rate swaps, investment management advisory, and cash management services to states and municipalities.

Potential upside of 93.5% exists for Ambac Financial, based on a current level of $12.40 and analysts' average consensus price target of $24.00. The stock should run into initial resistance at its 50-day moving average (MA) of $18.92 and subsequent resistance at its 200-day MA of $18.97.

Over the past year, Ambac Financial has traded in a range of $8.74 to $22.80 and closed yesterday at $12.40, 42% above that low. Over the last five market days, the 200-day moving average (MA) has gone down 0.5% while the 50-day MA has declined 5%.

SmarTrend recommended that its subscribers protect gains by selling shares of Ambac Financial on February 26th, 2020 by issuing a Downtrend alert when the shares were trading at $20.80. Since that call, shares of Ambac Financial have fallen 40.4%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bearish am inside day candle ambac financial

Ticker(s): AMBC