BBL closes above its opening price after recovering from early selling pressure


BHP Billiton plc Sponsored ADR (BBL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team

Highlights

BBL closes above its opening price after recovering from early selling pressure
BBL still stuck within tight trading range
BBL closes within previous day's range after lackluster session

Overview

BBL finished the week 10.24% higher at 37.91 after edging higher $0.11 (0.29%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.24 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 4th, BBL gained 0.40% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.

Daily Candlestick Chart (BBL as at May 22, 2020):

Daily technical analysis candlestick chart for BHP Billiton plc Sponsored ADR (BBL) as at May 22, 2020

Friday's trading range has been $0.55 (1.46%), that's below the last trading month's daily average range of $0.74. 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 BBL. Prices continued to consolidate within a tight trading range between 36.82 and 38.53 where it has been caught now for the whole last trading week.

One bullish candlestick pattern matches today's price action, the White Candle.

Prices are trading close to the key technical resistance level at 38.53 (R1).

Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.

Buying could accelerate should prices move above the nearby swing high at 38.53 where further buy stops might get triggered. Trading close to March's high at 39.02 we could see further upside momentum if potential buy stops at the level get activated.

Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for BHP Billiton. Out of 418 times, BBL closed lower 51.91% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.07% with an average market move of -0.58%.


Market Conditions for BBL as at May 22, 2020

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