BFAM dominated by bulls lifting the market higher throughout the day
Bright Horizons Family Solutions Inc. (BFAM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, BFAM ended Thursday at 100.87 gaining $6.71 (7.13%), outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 99.86, the share confirmed its breakout through the previous session high after trading up to $1.23 above it intraday.
Daily Candlestick Chart (BFAM as at Mar 26, 2020):
Thursday's trading range has been $6.86 (7.18%), that's below the last trading month's daily average range of $9.74. 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 significantly higher than usual for BFAM.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 92.96 (S1). After having been unable to move above 99.86 in the prior session, Bright Horizons ran into sellers again around the same price level today, missing to move higher than 101.09. The last time this happened on March 13th, BFAM lost -24.46% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Bright Horizons. Out of 510 times, BFAM closed higher 52.35% 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 61.76% with an average market move of 0.86%.