BXP closes above its opening price after recovering from early selling pressure
Boston Properties Inc. (BXP) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
BXP finished the month -1.43% lower at 89.09 after gaining $0.82 (0.93%) today on high volume, slightly outperforming the S&P 500 (0.77%). Trading up to $1.54 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 88.72, Boston Properties confirmed its breakout through the previous session high after trading up to $0.48 above it intraday.
Daily Candlestick Chart (BXP as at Jul 31, 2020):
Friday's trading range has been $2.56 (2.9%), that's slightly below the last trading month's daily average range of $2.87. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BXP. Prices continued to consolidate within a tight trading range between 86.12 and 91.47 where it has been caught now for the whole last trading week.
In spite of a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on July 10th, BXP gained 3.24% on the following trading day.
After trading down to 86.64 earlier during the day, the share bounced off the key technical support level at 87.40 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 91.47 (R1). After having been unable to move above 88.72 in the previous session, BXP ran into sellers again around the same price level today, missing to move higher than 89.20.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 91.47 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 86.12 where further sell stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Boston Properties. Out of 791 times, BXP closed higher 52.47% 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 56.26% with an average market move of 0.27%.