BXP closes below its opening price unable to hold early session gains
Boston Properties (BXP) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
BXP finished the week -3.5% lower at 114.70 after gaining $0.33 (0.29%) today, significantly underperforming the S&P 500 (1.42%). Trading $0.79 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BXP as at Oct 12, 2018):
Friday's trading range has been $2.09 (1.81%), that's slightly below the last trading month's daily average range of $2.20. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BXP.
Two candlestick patterns are matching today's price action, the Homing Pigeon which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
After having been unable to move lower than 114.32 in the previous session, Boston Properties found buyers again around the same price level today at 113.98. The last time this happened on Wednesday, BXP actually lost -3.94% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 121.54.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 111.57, downside momentum might accelerate should the market break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Homing Pigeon" stand out. Its common bullish interpretation has been confirmed for Boston Properties. Out of 19 times, BXP closed higher 52.63% 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 68.42% with an average market move of 2.08%.