BFAM rallies 2.45% on high volume
Bright Horizons Family Solutions Inc. (BFAM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BFAM finished Wednesday at 143.06 surging $3.42 (2.45%) on high volume, significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over two weeks. Today's close at 143.06 marks the highest recorded closing price since March 6th. Closing above Tuesday's high at 140.32, the share confirmed its breakout through the prior session high after trading up to $5.12 above it intraday.
Daily Candlestick Chart (BFAM as at Sep 16, 2020):
Wednesday's trading range has been $6.26 (4.47%), that's far above the last trading month's daily average range of $3.70. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BFAM.
Crossing above the upper Bollinger Band for the first time since August 13th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 134.04 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on August 13th, BFAM gained 1.58% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Bright Horizons. Out of 47 times, BFAM closed higher 57.45% 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 59.57% with an average market move of 0.42%.