BKH pushes through key technical resistance level
Black Hills Corporation (BKH) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BKH finished Thursday at 63.48 gaining $4.92 (8.4%) on low volume, notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 61.26, Black Hills confirmed its breakout through the prior session high after trading up to $2.89 above it intraday.
Daily Candlestick Chart (BKH as at Mar 26, 2020):
Thursday's trading range has been $5.34 (9.06%), that's slightly above the last trading month's daily average range of $5.11. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BKH.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 60.46 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, BKH gained 3.08% on the following trading day.
Though the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Black Hills. Out of 326 times, BKH closed higher 53.07% 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 57.36% with an average market move of 0.09%.