BAH fails to close above 20-day moving average
Booz Allen Hamilton Holding Corporation (BAH) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BAH finished Thursday at 68.41 gaining $3.28 (5.04%) on low volume, strongly underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 67.85, the share confirmed its breakout through the prior session high after trading up to $1.95 above it intraday.
Daily Candlestick Chart (BAH as at Mar 26, 2020):
Thursday's trading range has been $3.93 (5.96%), that's slightly below the last trading month's daily average range of $4.76. 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 significantly higher than usual for BAH.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, BAH gained 3.02% on the following trading day.
After spiking up to 69.80 during the day, the market found resistance at the 20-day moving average at 69.09.
While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 70.89 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Booz Allen. Out of 46 times, BAH closed higher 63.04% 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 58.70% with an average market move of 1.34%.