BWA finds buyers again around 33.43
BorgWarner Inc. (BWA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
BWA finished the week 1.73% higher at 34.15 after losing $0.93 (-2.65%) today, notably underperforming the S&P 500 (0.18%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BWA as at Feb 14, 2020):
Friday's trading range has been $1.53 (4.4%), that's far above the last trading month's daily average range of $1.05. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BWA.
After having been unable to move lower than 33.56 in the previous session, BorgWarner found buyers again around the same price level today at 33.43. The last time this happened on Tuesday, BWA gained 1.70% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 33.15 where further sell stops could get activated.
Among the two 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 493 times, BWA closed higher 52.33% 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 55.78% with an average market move of 0.86%.