BR closes above its opening price after recovering from early selling pressure
Broadridge Financial Solutions Inc.Common Stock (BR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
BR ended the month 6.46% higher at 134.34 after edging higher $0.45 (0.34%) today on high volume, slightly underperforming the S&P 500 (0.77%). Today's close at 134.34 marks the highest recorded closing price since July 26, 2019. Trading up to $1.10 lower after the open, Broadridge Financial managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 134.18, the market confirmed its breakout through the prior session high after trading up to $0.23 above it intraday.
Daily Candlestick Chart (BR as at Jul 31, 2020):
Friday's trading range has been $1.70 (1.27%), that's below the last trading month's daily average range of $2.36. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BR.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on April 9th, BR lost -3.13% on the following trading day.
Buyers managed to take out the key technical resistance level at 134.28 (now S1), which is likely to act as support going forward. The stock was sold again around 134.41 after having seen highs at 134.18, 134.28 and 134.07 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 136.99 is within reach and we might see further upside momentum should the share manage to break out beyond.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Broadridge Financial. Out of 124 times, BR closed higher 50.81% 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 70.16% with an average market move of 1.13%.