BA closes above its opening price after recovering from early selling pressure
The Boeing Company (BA) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BA ended the week -0.34% lower at 323.05 after gaining $5.26 (1.66%) today on high volume, notably outperforming the Dow Indu. (-0.58%). Trading up to $9.49 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 January 16th, BA actually lost -2.36% 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 Jan 24, 2020):
Friday's trading range has been $13.69 (4.25%), that's far above the last trading month's daily average range of $7.62. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BA.
While trading as low as 312.51 during the day, the stock has decisively rejected those price levels and formed a bullish Pin Bar closing $10.54 above today's low. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns.
Unable to break through the key technical resistance level at 324.40 (R1), The Boeing closed below it after spiking up to 326.20 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for The Boeing. Out of 56 times, BA closed higher 66.07% 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 64.29% with an average market move of 0.86%.