BBBY closes within previous day's range after lackluster session
Bed Bath & Beyond Inc. (BBBY) Technical Analysis Report for Oct 09, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BBBY ended Wednesday at 9.94 edging lower $0.01 (-0.1%), significantly underperforming the S&P 500 (0.91%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BBBY as at Oct 09, 2019):
Wednesday's trading range has been $0.21 (2.1%), that's far below the last trading month's daily average range of $0.47. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BBBY. Prices continued to consolidate within a tight trading range between 9.74 and 10.31 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 9.62 (S1). Prices are trading close to the key technical resistance level at 10.19 (R1). After having been unable to move above 10.10 in the prior session, Bed Bath ran into sellers again around the same price level today, missing to move higher than 10.05. The last time this happened on Monday, BBBY lost -2.64% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 10.31 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 9.74 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Bed Bath. Out of 315 times, BBBY closed higher 53.02% of the time on the next trading day after the market condition occurred.