BBL closes higher for the 4th day in a row
BHP Billiton plc Sponsored ADR (BBL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, BBL finished Wednesday at 46.40 gaining $0.76 (1.67%) on high volume, notably outperforming the S&P 500 (-0.46%).
Daily Candlestick Chart (BBL as at Sep 16, 2020):
Wednesday's trading range has been $0.46 (0.99%), that's below the last trading month's daily average range of $0.80. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BBL.
Prices are trading close to the key technical support level at 46.08 (S1).
Although BHP Billiton is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 48.67, upside momentum might speed up should the share be able to break out to new highs for the year. As prices are trading close to September's high at 47.15, upside momentum could accelerate should the market mark new highs for the month.
Among the three 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. Though it is usually interpreted as bearish, it has actually shown to be bullish for BHP Billiton. Out of 496 times, BBL closed higher 52.02% 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 50.00% with an average market move of 0.32%.