BDX closes within prior day's range after lackluster session
Becton Dickinson and Company (BDX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
BDX ended the week 3.26% higher at 243.26 after losing $1.22 (-0.5%) today, but still slightly outperforming the S&P 500 (-0.92%). Trading up to $2.24 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BDX as at Nov 09, 2018):
Friday's trading range has been $4.13 (1.7%), that's below the last trading month's daily average range of $5.95. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for BDX. Prices continued to consolidate within a tight trading range between 236.00 and 244.54 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 239.80 (S1). After having been unable to move above 244.54 in the previous session, Becton Dickinson ran into sellers again around the same price level today, missing to move higher than 244.12. The last time this happened on Monday, BDX actually gained 1.42% on the following trading day.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the close-by swing high at 244.54 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Becton Dickinson. Out of 608 times, BDX closed higher 52.14% 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 60.03% with an average market move of 0.71%.