BKI runs into sellers again around 48.52
Black Knight Inc. (BKI) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
BKI ended the week -5.2% lower at 47.60 after gaining $0.23 (0.49%) today, underperforming the S&P 500 (1.42%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BKI as at Oct 12, 2018):
Friday's trading range has been $1.42 (2.95%), that's far above the last trading month's daily average range of $0.92. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BKI.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar.
After having been unable to move above 48.46 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 48.52.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 51.40. The last time this happened on Tuesday, BKI actually lost -3.78% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three 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. Though it is usually interpreted as bearish, it has actually shown to be bullish for Black Knight. Out of 525 times, BKI closed higher 52.19% 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 58.10% with an average market move of 1.60%.