BAP closes higher for the 3rd day in a row
Credicorp Ltd. (BAP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BAP finished Wednesday at 130.08 edging higher $0.29 (0.22%) on high volume, outperforming the S&P 500 (-0.46%). 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 Sep 16, 2020):
Wednesday's trading range has been $2.23 (1.72%), that's below the last trading month's daily average range of $2.66. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BAP.
The market managed to close back above the 20-day moving average at 129.87 for the first time since September 9th. When this moving average was crossed above the last time on September 9th, BAP actually lost -1.67% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 133.13 where further buy stops might get triggered. As prices are trading close to September's high at 134.24, upside momentum could speed up should the stock mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Credicorp Ltd.. Out of 533 times, BAP closed higher 51.41% 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 53.28% with an average market move of 0.21%.