BGNE unable to break through key resistance level
BeiGene Ltd. (BGNE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
BGNE ended Wednesday at 255.13 edging lower $0.31 (-0.12%), but still slightly outperforming the S&P 500 (-0.46%). Trading $1.99 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BGNE as at Sep 16, 2020):
Wednesday's trading range has been $4.73 (1.85%), that's far below the last trading month's daily average range of $8.93. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BGNE.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 256.01 (R1), the market closed below it after spiking up to 258.00 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move above 257.87 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 258.00. The last time this happened on September 3rd, BGNE actually gained 3.19% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 242.37.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for BeiGene Ltd.. Out of 301 times, BGNE closed higher 51.50% 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 10 trading days, showing a win rate of 62.79% with an average market move of 3.62%.