BG closes above its opening price after recovering from early selling pressure
Bunge Limited (BG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, BG finished Wednesday at 46.51 edging higher $0.14 (0.3%), outperforming the S&P 500 (-0.46%). Trading up to $0.24 lower after the open, the share 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 (BG as at Sep 16, 2020):
Wednesday's trading range has been $0.67 (1.44%), that's far below the last trading month's daily average range of $1.05. 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 BG.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on August 14th, BG gained 1.00% on the following trading day.
Prices are trading close to the key technical resistance level at 46.94 (R1). After having been unable to move above 46.87 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 46.86.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 46.87 where further buy stops could get triggered. Further buying might move prices higher should the market test August's close-by high at 47.78.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Bunge. Out of 479 times, BG closed higher 51.15% 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 six trading days, showing a win rate of 53.03% with an average market move of 0.10%.