BBBY dominated by bears dragging the market lower throughout the day
Bed Bath & Beyond Inc. (BBBY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
BBBY finished the week -26.98% lower at 11.18 after losing $0.63 (-5.33%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 11.18 marks the lowest recorded closing price since October 9, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 11.46, the market confirmed its breakout through the previous session low after trading up to $0.38 below it intraday.
Daily Candlestick Chart (BBBY as at Feb 14, 2020):
Friday's trading range has been $0.76 (6.42%), that's slightly above the last trading month's daily average range of $0.68. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BBBY.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Last Engulfing Bottom Pattern which are both known as bullish patterns and one bearish pattern, the Black Candle. The last time a Black Candle showed up on Monday, BBBY actually gained 3.92% on the following trading day.
After having been unable to move above 11.99 in the prior session, Bed Bath ran into sellers again around the same price level today, failing to move higher than 11.84.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 14.90.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the close-by swing low at 10.83 where further sell stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Bed Bath. Out of 79 times, BBBY closed higher 60.76% 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 55.70% with an average market move of -0.28%.