BWXT soars 8.06% closing $3.61 higher
BWX Technologies Inc. (BWXT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
BWXT ended Thursday at 48.38 surging $3.61 (8.06%), significantly outperforming the S&P 500 (6.24%). This is the biggest single-day gain in over seven months. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 47.60, the stock confirmed its breakout through the previous session high after trading up to $1.40 above it intraday.
Daily Candlestick Chart (BWXT as at Mar 26, 2020):
Thursday's trading range has been $3.74 (8.25%), that's slightly above the last trading month's daily average range of $3.65. 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 notably lower than usual for BWXT.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on March 12th, BWXT gained 5.20% on the following trading day.
Buyers managed to take out the key technical resistance level at 45.95 (now S1), which is likely to act as support going forward. After spiking up to 49.00 during the day, the share found resistance at the 20-day moving average at 48.84.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for BWX Technologies. Out of 114 times, BWXT closed higher 54.39% 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 59.65% with an average market move of 0.35%.