BBBY closes lower for the 2nd day in a row
Bed Bath & Beyond Inc. (BBBY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BBBY finished Thursday at 4.89 losing $0.50 (-9.28%), significantly underperforming the S&P 500 (6.24%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 5.14, Bed Bath confirmed its breakout through the prior session low after trading up to $0.42 below it intraday.
Daily Candlestick Chart (BBBY as at Mar 26, 2020):
Thursday's trading range has been $0.81 (14.65%), that's below the last trading month's daily average range of $1.03. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BBBY.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on March 20th, BBBY lost -10.80% on the following trading day.
Prices are trading close to the key technical support level at 4.10 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 4.22 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Bed Bath. Out of 468 times, BBBY closed higher 55.77% of the time on the next trading day after the market condition occurred.