BCE unable to break through key resistance level
BCE Inc. (BCE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BCE finished Thursday at 39.04 gaining $1.35 (3.58%), significantly underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 39.03, the stock confirmed its breakout through the prior session high after trading up to $0.98 above it intraday.
Daily Candlestick Chart (BCE as at Mar 26, 2020):
Thursday's trading range has been $2.03 (5.32%), that's slightly below the last trading month's daily average range of $2.50. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BCE.
Unable to break through the key technical resistance level at 39.36 (R1), the share closed below it after spiking up to 40.01 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on March 18th, BCE actually gained 4.35% on the following trading day.
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Its common bearish interpretation has been confirmed for BCE. Out of 328 times, BCE closed lower 54.27% 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 52.44% with an average market move of -0.16%.