BLL finds buyers again around 47.97
Ball Corporation (BLL) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BLL finished the week -1.47% lower at 48.39 after losing $0.33 (-0.68%) today, but still significantly outperforming the S&P 500 (-2.33%) following today's NFP report. Today's close at 48.39 marks the lowest recorded closing price since November 12th. Trading $0.60 higher after the open, the market 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 missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BLL as at Dec 07, 2018):
Friday's trading range has been $1.43 (2.93%), that's far above the last trading month's daily average range of $1.00. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for BLL.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
After spiking up to 49.40 during the day, Ball found resistance at the 20-day moving average at 49.17. The last time this happened on October 15th, BLL actually gained 3.36% on the following trading day. After having been unable to move lower than 47.94 in the previous session, the stock found buyers again around the same price level today at 47.97.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the close-by swing low at 47.94 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Ball. Out of 53 times, BLL closed higher 69.81% 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 69.81% with an average market move of 1.57%.