BEN pushes through key technical resistance level
Franklin Resources Inc. (BEN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BEN ended the month 11.13% higher at 20.97 after gaining $0.53 (2.59%) today, significantly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 20.50, the stock confirmed its breakout through the previous session high after trading up to $0.59 above it intraday.
Daily Candlestick Chart (BEN as at Jun 30, 2020):
Tuesday's trading range has been $0.82 (4.04%), that's slightly below the last trading month's daily average range of $0.94. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BEN.
In spite of a weak opening Franklin Resources managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on May 18th, BEN lost -2.24% on the following trading day.
Buyers managed to take out the key technical resistance level at 20.76 (now S1), which is likely to act as support going forward.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Franklin Resources. Out of 65 times, BEN closed higher 52.31% 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 four trading days, showing a win rate of 55.38% with an average market move of 0.28%.