BBBY stuck within tight trading range
Bed Bath & Beyond Inc. (BBBY) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
BBBY ended Monday at 24.73 losing $0.63 (-2.48%), underperforming the S&P 500 (-1.86%). Trading $0.75 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BBBY as at Oct 26, 2020):
Monday's trading range has been $1.53 (6.17%), that's slightly above the last trading month's daily average range of $1.36. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BBBY. Prices continued to consolidate within a tight trading range between 24.02 and 25.66 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, five candlestick patterns are matching today's price action, the Evening Star and the Gravestone Doji which are both known as bearish patterns and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
Prices are trading close to the key technical resistance level at 25.76 (R1). The share found buyers again today around 24.02 for the third trading day in a row after having found demand at 24.09 in the prior session and at 24.12 two days ago. The last time this happened on September 30th, BBBY gained 25.17% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Evening Star" stand out. Its common bearish interpretation has been confirmed for Bed Bath. Out of 4 times, BBBY closed lower 75.00% of the time on the next trading day after the market condition occurred.