BERY breaks below key technical support level
Berry Global Group Inc. (BERY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BERY finished the week -0.02% lower at 41.94 after losing $0.34 (-0.8%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.47 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 previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BERY as at Feb 14, 2020):
Friday's trading range has been $0.88 (2.08%), that's slightly below the last trading month's daily average range of $1.19. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BERY.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices broke below the key technical support level at 41.99 (now R1), which is likely to act as resistance going forward. The last time this happened on February 7th, BERY lost -0.69% on the following trading day. After having been unable to move lower than 41.78 in the prior session, Berry Global found buyers again around the same price level today at 41.87.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might speed up should prices move below the nearby swing low at 41.78 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Berry Global. Out of 291 times, BERY closed higher 55.33% 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 57.04% with an average market move of 0.73%.