BHC finds buyers again around 28.41
Bausch Health Companies Inc. (BHC) Technical Analysis Report for Dec 05, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BHC finished Thursday at 28.95 gaining $0.27 (0.94%), outperforming the S&P 500 (0.15%). Today's close at 28.95 marks the highest recorded closing price since September 8, 2016. Trading up to $0.29 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, BHC gained 1.45% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BHC as at Dec 05, 2019):
Thursday's trading range has been $0.55 (1.92%), that's slightly below the last trading month's daily average range of $0.56. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for BHC.
After trading down to 28.41 earlier during the day, the market bounced off the key technical support level at 28.64 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move lower than 28.47 in the prior session, Bausch Health found buyers again around the same price level today at 28.41.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 29.03 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Bausch Health. Out of 288 times, BHC closed higher 56.60% 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 57.29% with an average market move of 1.32%.