BEN closes lower for the 2nd day in a row
Franklin Resources Inc. (BEN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BEN ended the week 0.73% higher at 17.89 after edging lower $0.07 (-0.39%) today, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 17.93, the stock confirmed its breakout through the prior session low after trading up to $0.43 below it intraday.
Daily Candlestick Chart (BEN as at May 22, 2020):
Friday's trading range has been $0.66 (3.66%), that's below the last trading month's daily average range of $0.89. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BEN.
One bullish candlestick pattern matches today's price action, the Hammer.
After trading down to 17.50 earlier during the day, the share bounced off the key technical support level at 17.85 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Monday, BEN actually lost -2.24% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 18.55 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Franklin Resources. Out of 426 times, BEN closed higher 55.63% of the time on the next trading day after the market condition occurred.