BVSP pushes through Wednesday's high
Bovespa Index (BVSP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BVSP ended Thursday at 77709.66 gaining R$2753.66 (3.67%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 76714.00, the stock index confirmed its breakout through the prior session high after trading up to R$2132.34 above it intraday.
Daily Candlestick Chart (BVSP as at Mar 26, 2020):
Thursday's trading range has been R$3923.07 (5.23%), that's far below the last trading month's daily average range of R$7632.10. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BVSP.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on February 17th, BVSP actually lost -0.29% on the following trading day.
Though the index is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Bovespa. Out of 504 times, BVSP closed higher 52.58% 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 five trading days, showing a win rate of 53.37% with an average market move of -0.02%.