BA stuck within tight trading range
The Boeing Company (BA) Technical Analysis Report for May 21, 2019 | by Techniquant Editorial Team
BA ended Tuesday at 358.75 gaining $5.96 (1.69%), outperforming the Dow Indu. (0.77%). Trading up to $3.15 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 10th, BA actually lost -4.88% 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 May 21, 2019):
Tuesday's trading range has been $5.89 (1.65%), that's below the last trading month's daily average range of $7.86. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BA. Prices continued to consolidate within a tight trading range between 350.53 and 360.77 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 359.99 (R1), The Boeing closed below it after spiking up to 360.77 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might speed up should prices move below the close-by swing low at 350.53 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for The Boeing. Out of 612 times, BA closed higher 56.21% 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 63.07% with an average market move of 1.13%.