BA closes above its opening price after recovering from early selling pressure
The Boeing Company (BA) Technical Analysis Report for Dec 06, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BA finished Thursday at 331.90 losing $10.60 (-3.09%) on high volume ahead of tomorrow's NFP report. Trading up to $12.69 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on November 30th, BA gained 3.81% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BA as at Dec 06, 2018):
Thursday's trading range has been $16.33 (4.95%), that's above the last trading month's daily average range of $12.01. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BA.
After trading down to 317.30 earlier during the day, The Boeing bounced off the key technical support level at 328.63 (S1). The failure to close below the support could increase that levels importance as support going forward. The market closed back below the 20-day moving average at 340.04 for the first time since November 29th.
While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for The Boeing. Out of 407 times, BA closed higher 57.99% 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 10 trading days, showing a win rate of 64.13% with an average market move of 1.43%.