BECN dominated by bulls lifting the market higher throughout the day
Beacon Roofing Supply Inc. (BECN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
BECN finished the month 18.16% higher at 31.16 after gaining $0.62 (2.03%) today on high volume, notably outperforming the S&P 500 (0.77%). Today's close at 31.16 marks the highest recorded closing price since March 2nd. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 30.64, the stock confirmed its breakout through the previous session high after trading up to $0.55 above it intraday.
Daily Candlestick Chart (BECN as at Jul 31, 2020):
Friday's trading range has been $0.89 (2.94%), that's below the last trading month's daily average range of $1.24. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BECN.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Short Candle showed up on March 31st, BECN actually lost -9.07% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 31.22 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Beacon Roofing. Out of 144 times, BECN closed higher 56.94% 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 10 trading days, showing a win rate of 61.81% with an average market move of 1.13%.