BWXT closes above its opening price after recovering from early selling pressure
BWX Technologies Inc. (BWXT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, BWXT ended the week 4.48% higher at 68.63 after edging higher $0.08 (0.12%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 68.63 marks the highest recorded closing price since April 26, 2018. Trading up to $0.43 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 4th, BWXT gained 1.51% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BWXT as at Feb 14, 2020):
Friday's trading range has been $0.71 (1.04%), that's below the last trading month's daily average range of $1.12. 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 slightly higher than usual for BWXT.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
After having been unable to move above 68.75 in the previous session, BWX Technologies ran into sellers again around the same price level today, missing to move higher than 68.80.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 65.90.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for BWX Technologies. Out of 21 times, BWXT closed higher 71.43% 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 61.90% with an average market move of -0.13%.