BEN dominated by bulls lifting the market higher throughout the day
Franklin Resources Inc. (BEN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
BEN finished the month 0.38% higher at 21.05 after gaining $0.38 (1.84%) today on high volume, strongly outperforming the S&P 500 (0.77%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 20.86, Franklin Resources confirmed its breakout through the previous session high after trading up to $0.20 above it intraday.
Daily Candlestick Chart (BEN as at Jul 31, 2020):
Friday's trading range has been $0.56 (2.72%), that's slightly below the last trading month's daily average range of $0.64. 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 slightly lower than usual for BEN. Prices continued to consolidate within a tight trading range between 20.47 and 21.18 where it has been caught now for the last three trading days.
Regardless of a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 50-day moving average at 20.93. Prices are trading close to the key technical resistance level at 21.17 (R1). The stock found buyers again today around 20.50 for the third trading day in a row after having found demand at 20.47 in the previous session and at 20.54 two days ago. The last time this happened on July 2nd, BEN gained 2.70% on the following trading day.
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 21.18 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 20.47 where further sell stops could get triggered. As prices are trading close to July's high at 21.84, upside momentum might speed up should BEN mark new highs for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Franklin Resources. Out of 101 times, BEN closed lower 59.41% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 58.42% with an average market move of -1.07%.