BX finds buyers at key support level
The Blackstone Group L.P. Representing Limited Partnership Interests (BX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BX ended the month -5.97% lower at 53.28 after tanking $1.39 (-2.54%) today, strongly underperforming the S&P 500 (0.77%). This is the biggest single-day loss in over three weeks. The last time we've seen such an unusually strong single-day loss on June 26th, BX actually gained 2.69% on the following trading day. Today's close at 53.28 marks the lowest recorded closing price since May 19th. Closing below Thursday's low at 53.88, the stock confirmed its breakout through the prior session low after trading up to $1.26 below it intraday.
Daily Candlestick Chart (BX as at Jul 31, 2020):
Friday's trading range has been $1.86 (3.42%), that's above the last trading month's daily average range of $1.34. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BX.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 52.62 earlier during the day, The Blackstone bounced off the key technical support level at 52.69 (S1). The failure to close below the support might increase that levels significance as support going forward. The market closed below the 200-day moving average at 53.83 for the first time since May 15th.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
As prices are trading close to July's low at 52.31, downside momentum could speed up should the share mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for The Blackstone. Out of 424 times, BX closed higher 53.30% 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 58.49% with an average market move of 0.99%.