BA.L closes above its opening price after recovering from early selling pressure


BAE Systems (BA.L) Technical Analysis Report for Aug 10, 2018 [1 min read]
Highlights
BA.L pushes through key resistance level
BA.L closes above its opening price after recovering from early selling pressure
BA.L ends the day on a bullish note closing near the high of the day
BA.L finds buyers again around 620.60
BA.L closes within previous day's range after lackluster session
TQ Sentiment
Report Sentiment: 55% Bullish
Technical Forecast:
Overview

BA.L ended the week 0.1% higher at 625.60 after gaining £1.80 (0.29%) today. Trading up to £3.20 lower after the open, BAE Systems managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range in a lackluster session. Ending with a strong close near the high of the day sets a bullish note for the next session.

Daily chart for BA.L
Volatility

Friday's trading range was £6.20 (0.99%), that's below last trading month's daily average range of £9.51. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly above average.

Price Action

During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle.

Support/Resistance

Breaking through the key resistance level at 624.80 today, it is now likely to act as support going forward. After having been unable to move lower than 620.00 in the prior session, the stock found buyers again around the same price level today at 620.60.

Trend

While still in a long-term uptrend, the short and medium-term trends both turned bearish already.

Order Flow

Buying could speed up should prices move above the close-by swing high at 634.60 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 620.00 where further sell stops might get triggered. Trading close to June's low at 609.00 we could see further downside momentum if potential sell stops at the level get activated.

Conclusion

While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bullish.

Market Conditions for BAE Systems
Condition Forecast Direction Win Avg Worst Best Events
Close to S1 Support TQ Pro Members Only
Low close to previous low TQ Pro Members Only
Bounced off Technical Support S1 TQ Pro Members Only
Bullish Spinning Top TQ Pro Members Only
Bullish Intraday Reversal TQ Pro Members Only
More market conditions identified for TQ Pro members...
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