BEN closes above its opening price after recovering from early selling pressure
Franklin Resources Inc. (BEN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
BEN ended the week -4.84% lower at 24.36 after gaining $0.15 (0.62%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.26 lower after the open, the stock 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 failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BEN as at Feb 14, 2020):
Friday's trading range has been $0.44 (1.82%), that's below the last trading month's daily average range of $0.61. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BEN.
After having been unable to move lower than 24.01 in the prior session, the market found buyers again around the same price level today at 23.96. The last time this happened on February 6th, BEN actually lost -1.84% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 25.34.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six 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 79 times, BEN closed higher 60.76% 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 62.03% with an average market move of 1.33%.