BBBY closes below its opening price unable to hold early session gains
Bed Bath & Beyond Inc. (BBBY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
BBBY finished the month 45.8% higher at 10.60 after edging lower $0.22 (-2.03%) today, notably underperforming the S&P 500 (1.54%). Trading $0.64 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 26th, BBBY actually gained 7.66% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BBBY as at Jun 30, 2020):
Tuesday's trading range has been $0.99 (9.25%), that's above the last trading month's daily average range of $0.80. Weekly volatility is also higher, being slightly above 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 Bearish Spinning Top.
After trading down to 10.35 earlier during the day, the stock bounced off the key technical support level at 10.43 (S1). The failure to close below the support could increase that levels significance as support going forward. The market closed back below the 200-day moving average at 10.81.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Bed Bath. Out of 383 times, BBBY closed higher 55.35% 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 two trading days, showing a win rate of 53.00% with an average market move of -0.02%.