BEN closes lower for the 2nd day in a row
Franklin Resources Inc. (BEN) Technical Analysis Report for Jun 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BEN ended Tuesday at 33.37 edging lower $0.03 (-0.09%), slightly underperforming the S&P 500 (-0.03%). Trading $0.29 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 5th, BEN actually gained 0.48% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BEN as at Jun 11, 2019):
Tuesday's trading range has been $0.60 (1.79%), that's slightly above the last trading month's daily average range of $0.59. 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 lower than usual for BEN. Prices continued to consolidate within a tight trading range between 33.19 and 33.96 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 32.96 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 33.96 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Franklin Resources. Out of 214 times, BEN closed higher 55.61% 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 59.81% with an average market move of 0.83%.