BHC closes above its opening price after recovering from early selling pressure
Bausch Health Companies Inc. (BHC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
BHC finished the month -1.03% lower at 18.29 after gaining $0.10 (0.55%) today, underperforming the S&P 500 (1.54%). Trading up to $0.46 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BHC as at Jun 30, 2020):
Tuesday's trading range has been $0.83 (4.61%), that's slightly below the last trading month's daily average range of $1.00. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BHC.
After trading down to 17.55 earlier during the day, the stock bounced off the key technical support level at 17.63 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on June 17th, BHC gained 1.36% on the following trading day. Prices are trading close to the key technical resistance level at 18.88 (R1).
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Bausch Health. Out of 339 times, BHC closed higher 55.46% 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 54.57% with an average market move of 0.36%.