BAP falls to lowest close since May 22nd
Credicorp Ltd. (BAP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
BAP ended the month -3.01% lower at 133.67 after losing $1.63 (-1.2%) today on low volume, significantly underperforming the S&P 500 (1.54%). Today's close at 133.67 marks the lowest recorded closing price since May 22nd. Trading $1.11 higher after the open, Credicorp Ltd. was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BAP as at Jun 30, 2020):
Tuesday's trading range has been $2.46 (1.83%), that's far below the last trading month's daily average range of $5.16. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BAP.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on June 17th, BAP lost -2.95% on the following trading day.
Prices are trading close to the key technical support level at 131.86 (S1). After having been unable to move lower than 133.49 in the prior session, the share found buyers again around the same price level today at 132.94.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Trading close to April's low at 129.18 we could see further downside momentum if potential sell stops at the level get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Credicorp Ltd.. Out of 448 times, BAP closed higher 51.12% 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 53.57% with an average market move of 0.31%.