BA finds buyers again around 135.78
The Boeing Company (BA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
BA finished the week 14.61% higher at 137.53 after losing $1.47 (-1.06%) today on low volume, significantly underperforming the Dow Indu. (-0.04%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BA as at May 22, 2020):
Friday's trading range has been $5.30 (3.76%), that's below the last trading month's daily average range of $7.50. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BA.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 134.52 (S1). After having been unable to move lower than 136.15 in the previous session, The Boeing found buyers again around the same price level today at 135.78. The last time this happened on Wednesday, BA gained 4.26% on the following trading day.
While the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 144.24 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for The Boeing. Out of 471 times, BA closed higher 52.65% 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 58.39% with an average market move of 0.72%.