BCS stuck within tight trading range
Barclays PLC (BCS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
BCS ended Wednesday at 5.29 gaining $0.07 (1.34%), notably outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 5.28, the share confirmed its breakout through the prior session high after trading up to $0.07 above it intraday.
Daily Candlestick Chart (BCS as at Sep 16, 2020):
Wednesday's trading range has been $0.17 (3.26%), that's far above the last trading month's daily average range of $0.12. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BCS. Prices continued to consolidate within a tight trading range between 5.18 and 5.35 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Regardless 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 June 25th, BCS actually lost -4.78% on the following trading day.
Prices are trading close to the key technical resistance level at 5.38 (R1).
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Trading close to July's low at 5.12 we could see further downside momentum if potential sell stops at the level get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Barclays PLC. Out of 67 times, BCS closed lower 52.24% of the time on the next trading day after the market condition occurred.