BA closes lower for the 2nd day in a row
The Boeing Company (BA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BA ended the week 1.11% higher at 340.49 after losing $2.33 (-0.68%) today, underperforming the Dow Indu. (-0.09%) ahead of tomorrow's Presidents' Day market holiday. Trading $2.20 higher after the open, The Boeing was unable to hold its gains as the bears took control ending the day below its opening price. 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 Feb 14, 2020):
Friday's trading range has been $6.50 (1.9%), that's slightly below the last trading month's daily average range of $8.62. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BA.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on February 4th, BA actually gained 3.65% on the following trading day.
Unable to break through the key technical resistance level at 344.19 (R1), the share closed below it after spiking up to 344.50 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
While the market 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 four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for The Boeing. Out of 284 times, BA closed higher 52.46% 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 58.45% with an average market move of 0.62%.