BERY slides to lowest close since July 31st
Berry Global Group Inc. (BERY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BERY finished Wednesday at 51.16 losing $0.40 (-0.78%), slightly underperforming the S&P 500 (-0.46%). Today's close at 51.16 marks the lowest recorded closing price since July 31st. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 51.47, the share confirmed its breakout through the prior session low after trading up to $0.73 below it intraday.
Daily Candlestick Chart (BERY as at Sep 16, 2020):
Wednesday's trading range has been $1.54 (2.95%), that's slightly above the last trading month's daily average range of $1.35. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BERY.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 51.32 (now R1), which is likely to act as resistance going forward. The last time this happened on September 3rd, BERY actually gained 0.82% on the following trading day.
While the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Further selling could move prices lower should the market test August's nearby low at 50.04.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Berry Global. Out of 237 times, BERY closed higher 56.54% 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 60.34% with an average market move of 1.29%.