BBBY finds buyers at key support level
Bed Bath & Beyond Inc. (BBBY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
BBBY finished the month 2.08% higher at 10.82 after losing $0.14 (-1.28%) today, notably underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BBBY as at Jul 31, 2020):
Friday's trading range has been $0.64 (5.78%), that's slightly below the last trading month's daily average range of $0.69. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BBBY.
In spite of a strong opening Bed Bath closed below the prior day's open and close, forming a bearish Engulfing Candle.
After trading down to 10.50 earlier during the day, the market bounced off the key technical support level at 10.65 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on July 20th, BBBY gained 6.07% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 11.54 where further buy stops might get triggered.
Among the three 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 382 times, BBBY closed higher 56.02% 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 53.40% with an average market move of 0.05%.