BCO still stuck within tight trading range
Brinks Company (BCO) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
BCO finished Wednesday at 45.65 gaining $0.45 (1.0%), significantly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BCO as at Sep 16, 2020):
Wednesday's trading range has been $1.57 (3.48%), that's slightly below the last trading month's daily average range of $1.79. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BCO. Prices continued to consolidate within a tight trading range between 44.58 and 46.71 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on August 19th, BCO actually lost -1.95% on the following trading day.
After trading down to 44.64 earlier during the day, the stock bounced off the key technical support level at 44.96 (S1). The failure to close below the support could increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 46.71 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 44.58 where further sell stops could get activated. Further selling might move prices lower should the market test August's nearby low at 42.95.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Brinks. Out of 394 times, BCO closed higher 57.36% 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 53.30% with an average market move of 0.57%.