BP.L closes above its opening price after recovering from early selling pressure
BP (BP.L) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BP.L finished the week -4.2% lower at 523.90 after losing £5.10 (-0.96%) today, slightly underperforming the FTSE 100 (-0.5%). Today's close at 523.90 marks the lowest recorded closing price since April 23rd. Trading up to £6.40 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BP.L as at Nov 09, 2018):
Friday's trading range has been £8.30 (1.59%), that's far below the last trading month's daily average range of £14.20. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BP.L.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns. The last time a Bullish Spinning Top showed up on Wednesday, BP.L actually lost -2.81% on the following trading day.
Prices are trading close to the key technical support level at 514.60 (S1). Prices are trading close to the key technical resistance level at 531.00 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling could move prices lower should the market test October's nearby low at 514.60.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for BP. Out of 63 times, BP.L closed lower 53.97% 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 10 trading days, showing a win rate of 53.97% with an average market move of -0.70%.