BAH runs into sellers again around 70.93
Booz Allen Hamilton Holding Corporation (BAH) Technical Analysis Report for Apr 02, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BAH finished Thursday at 70.48 edging higher $0.88 (1.26%) on low volume, notably underperforming the S&P 500 (2.28%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 70.32, the market confirmed its breakout through the prior session high after trading up to $0.61 above it intraday.
Daily Candlestick Chart (BAH as at Apr 02, 2020):
Thursday's trading range has been $3.18 (4.68%), that's below the last trading month's daily average range of $4.98. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for BAH. Prices continued to consolidate within a tight trading range between 66.53 and 72.03 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 70.27 (now S1), which is likely to act as support going forward. The last time this happened on Monday, BAH actually lost -3.70% on the following trading day. After having been unable to move above 70.32 in the previous session, Booz Allen ran into sellers again around the same price level today, missing to move higher than 70.93.
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 close-by swing high at 72.03 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 66.53 where further sell stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Booz Allen. Out of 292 times, BAH closed higher 52.40% 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 60.62% with an average market move of 0.95%.