BGCP pushes through key technical resistance level
BGC Partners Inc. (BGCP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
BGCP ended Wednesday at 2.46 surging $0.09 (3.8%), significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over two weeks. The last time we've seen such an unusually strong single-day gain on August 28th, BGCP actually lost -3.45% on the following trading day. Closing above Tuesday's high at 2.45, the share confirmed its breakout through the prior session high after trading up to $0.07 above it intraday.
Daily Candlestick Chart (BGCP as at Sep 16, 2020):
Wednesday's trading range has been $0.15 (6.28%), that's far above the last trading month's daily average range of $0.11. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BGCP. Prices continued to consolidate within a tight trading range between 2.34 and 2.52 where it has been caught now for the whole last trading week.
Buyers managed to take out the key technical resistance level at 2.40 (now S1), which is likely to act as support going forward. After spiking up to 2.52 during the day, the market found resistance at the 20-day moving average at 2.49.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 2.52 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 2.34 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for BGC Partners. Out of 55 times, BGCP closed lower 54.55% 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 52.73% with an average market move of -1.32%.