BHGE slumps, losing $1.24 (-4.64%) within a single day on high volume
Baker Hughes a GE company Class A (BHGE) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BHGE finished the week -2.15% lower at 25.51 after tanking $1.24 (-4.64%) today on high volume, strongly underperforming the S&P 500 (-0.92%). This is the biggest single-day loss in over two weeks. Today's close at 25.51 marks the lowest recorded closing price since August 8, 2002. Trading $0.61 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (BHGE as at Nov 09, 2018):
Friday's trading range has been $1.56 (5.93%), that's far above the last trading month's daily average range of $1.06. 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 BHGE.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on October 26th, BHGE actually lost -2.81% on the following trading day.
Unable to break through the key technical resistance level at 26.55 (R1), the stock closed below it after spiking up to 26.91 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) below 30" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Baker Hughes. Out of 24 times, BHGE closed lower 58.33% 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 nine trading days, showing a win rate of 54.17% with an average market move of -0.05%.