BWA unable to break through key resistance level

BorgWarner (BWA) Technical Analysis Report for Apr 16, 2018

Highlights

BWA runs into sellers around 54.07 for the third day in a row
BWA closes above its opening price after recovering from early selling pressure
BWA unable to break through key resistance level
BWA rises to highest close since February 7th
BWA still stuck within tight trading range

TQ Sentiment

Report Sentiment: 0% Neutral
Technical Forecast:

Overview

BWA ended Monday at 53.80 gaining $0.94 (1.78%). Today's closing price of 53.80 marks the highest close since February 7th. Trading up to $0.55 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.

Daily chart for BWA

Volatility

Monday's trading range was $1.06 (1.98%), that's below last trading month's daily average range of $1.43. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly above average. Prices continued to consolidate within a tight trading range between 52.26 and 54.09 which it has been in now for the last trading week.

Price Action

After moving lower in the previous session, the stock managed to close higher but below the prior day's open, forming a bullish Harami Candle.

Support/Resistance

Unable to break through the key technical resistance level at 53.88, the share closed below it after spiking as high as 54.07 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. BorgWarner ran into sellers again today around 54.07 for the third trading day in a row after having found sellers at 54.01 in the previous session and at 54.09 two days ago.

Trend

BWA shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.

Order Flow

Buying might accelerate should prices move above the close-by swing high at 54.09 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 52.69 where further sell stops could get activated. Trading close to February's high at 56.43 we might see further upside momentum if potential buy stops at the level get triggered.

Conclusion

While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bullish.

Market Conditions for BorgWarner

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