BBBY runs into sellers again around 13.13
Bed Bath & Beyond Inc. (BBBY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
BBBY finished Wednesday at 12.83 gaining $0.28 (2.23%), strongly outperforming the S&P 500 (-0.46%). 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 Sep 16, 2020):
Wednesday's trading range has been $0.59 (4.66%), that's slightly below the last trading month's daily average range of $0.67. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BBBY.
After trading down to 12.54 earlier during the day, the share bounced off the key technical support level at 12.61 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move above 13.04 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 13.13. The last time this happened on August 14th, BBBY actually gained 4.21% on the following trading day.
Although Bed Bath is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to September's high at 13.26, upside momentum could accelerate should the market mark new highs for the month.
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 384 times, BBBY closed higher 55.99% 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 53.65% with an average market move of 0.08%.