BWA stuck within tight trading range
BorgWarner Inc. (BWA) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BWA finished Tuesday at 43.87 edging lower $0.01 (-0.02%), slightly underperforming the S&P 500 (0.05%). Trading $0.20 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. 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 (BWA as at Apr 16, 2019):
Tuesday's trading range has been $0.42 (0.96%), that's far below the last trading month's daily average range of $0.85. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BWA. Prices continued to consolidate within a tight trading range between 43.35 and 44.41 where it has been caught now for the last three trading days.
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. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After having been unable to move lower than 43.60 in the previous session, the market found buyers again around the same price level today at 43.73. The last time this happened on April 10th, BWA actually lost -0.02% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 44.41 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for BorgWarner. Out of 500 times, BWA closed higher 52.00% 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 56.20% with an average market move of 1.06%.