BHGE finds buyers again around 30.46
Baker Hughes, a GE Company (BHGE) Technical Analysis Report for Oct 12, 2018
BHGE ended the week -3.29% lower at 30.85 after gaining $0.19 (0.62%) today, underperforming the S&P 500 (1.42%). 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 (BHGE as at Oct 12, 2018):
Friday's trading range has been $0.80 (2.58%), that's below the last trading month's daily average range of $0.95. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BHGE.
Two candlestick patterns are matching today's price action, the Homing Pigeon which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 30.45 (S1). Prices are trading close to the key technical resistance level at 31.32 (R1). After having been unable to move lower than 30.59 in the previous session, the market found buyers again around the same price level today at 30.46. The last time this happened on Wednesday, BHGE actually lost -3.95% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 32.47.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling might move prices lower should the market test September's close-by low at 30.45.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Homing Pigeon" stand out. Its common bullish interpretation has been confirmed for Baker Hughes,. Out of 17 times, BHGE closed higher 76.47% 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 nine trading days, showing a win rate of 58.82% with an average market move of 0.02%.