BEN closes within previous day's range
Franklin Resources (BEN) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
BEN finished the week -6.52% lower at 28.54 after flat today, significantly underperforming the S&P 500 (1.42%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BEN as at Oct 12, 2018):
Friday's trading range has been $1.07 (3.68%), that's far above the last trading month's daily average range of $0.69. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BEN.
One bearish candlestick pattern matches today's price action, the Black Candle.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 30.95.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Franklin Resources. Out of 63 times, BEN closed higher 58.73% 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 61.90% with an average market move of 3.44%.