BBBY closes below its opening price unable to hold early session gains
Bed Bath & Beyond Inc. (BBBY) Technical Analysis Report for Oct 16, 2020 | by Techniquant Editorial Team
BBBY finished the week 15.7% higher at 24.83 after losing $0.13 (-0.52%) today, underperforming the S&P 500 (0.01%). Trading $0.70 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on October 6th, BBBY actually gained 4.41% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BBBY as at Oct 16, 2020):
Friday's trading range has been $0.92 (3.67%), that's below the last trading month's daily average range of $1.25. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BBBY.
One bearish candlestick pattern matches today's price action, the Shooting Star.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Bed Bath. Out of 73 times, BBBY closed lower 54.79% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.05% with an average market move of -0.72%.