HXL closes lower for the 2nd day in a row
Hexcel Corporation (HXL) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HXL finished the week -2.98% lower at 37.49 after tanking $1.97 (-4.99%) today on high volume, significantly underperforming the S&P 500 (-1.12%). This is the biggest single-day loss in over two weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (HXL as at Sep 18, 2020):
Friday's trading range has been $2.29 (5.84%), that's above the last trading month's daily average range of $1.76. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HXL.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 10th, HXL actually gained 3.40% on the following trading day.
Prices are trading close to the key technical support level at 36.40 (S1). Prices broke below the key technical support level at 38.67 (now R1), which is likely to act as resistance going forward. After having been unable to move lower than 37.41 in the previous session, Hexcel found buyers again around the same price level today at 37.20.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might accelerate should prices move below the nearby swing low at 36.40 where further sell stops could get triggered. Further selling might move prices lower should the market test August's close-by low at 35.77.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Hexcel. Out of 249 times, HXL closed higher 56.63% 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 59.44% with an average market move of 1.15%.