BCO stuck within tight trading range
Brinks Company (BCO) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
BCO ended the week 2.01% higher at 84.17 after gaining $0.52 (0.62%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing above Thursday's high at 83.83, the market confirmed its breakout through the prior session high after trading up to $0.81 above it intraday.
Daily Candlestick Chart (BCO as at Feb 14, 2020):
Friday's trading range has been $1.63 (1.96%), that's slightly below the last trading month's daily average range of $2.15. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BCO. Prices continued to consolidate within a tight trading range between 82.55 and 84.94 where it has been caught now for the last three trading days.
In spite of a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on November 14, 2019, BCO gained 1.19% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 82.55 (S1). Prices are trading close to the key technical resistance level at 84.94 (R1).
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the close-by swing high at 84.94 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 82.55 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Brinks. Out of 68 times, BCO closed higher 57.35% 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 57.35% with an average market move of 0.98%.