BCS dominated by bears dragging the market lower throughout the day
Barclays PLC (BCS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BCS finished the week 0.11% higher at 9.08 after losing $0.07 (-0.77%) today, underperforming the S&P 500 (0.18%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BCS as at Feb 14, 2020):
Friday's trading range has been $0.09 (0.98%), that's slightly below the last trading month's daily average range of $0.11. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BCS.
After moving higher in the previous session, the share closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 9.17 (R1). After having been unable to move lower than 9.05 in the previous session, the stock found buyers again around the same price level today at 9.05. The last time this happened on Wednesday, BCS actually lost -0.65% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 9.03 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Barclays PLC. Out of 18 times, BCS closed higher 55.56% 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 two trading days, showing a win rate of 50.00% with an average market move of 0.43%.