BLL closes above its opening price after recovering from early selling pressure
Ball Corporation (BLL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
BLL ended the week 3.66% higher at 64.51 after gaining $0.47 (0.73%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.56 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, BLL gained 3.41% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BLL as at May 22, 2020):
Friday's trading range has been $1.11 (1.73%), that's below the last trading month's daily average range of $1.99. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BLL. Prices continued to consolidate within a tight trading range between 63.41 and 66.08 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
The market managed to close above the 50-day moving average at 64.30 for the first time since April 17th. After having been unable to move lower than 63.55 in the previous session, Ball found buyers again around the same price level today at 63.61.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 66.08 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 63.55 where further sell stops could get triggered. As prices are trading close to May's high at 67.56, upside momentum might accelerate should BLL mark new highs for the month.
Among the nine 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. While it is usually interpreted as bearish, it has actually shown to be bullish for Ball. Out of 563 times, BLL closed higher 53.11% 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 57.73% with an average market move of 0.67%.