BHC finds buyers at key support level
Bausch Health Companies Inc. (BHC) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
BHC finished Tuesday at 18.99 losing $0.14 (-0.73%), significantly underperforming the S&P 500 (0.36%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BHC as at Aug 04, 2020):
Tuesday's trading range has been $0.54 (2.84%), that's below the last trading month's daily average range of $0.69. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BHC.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, five candlestick patterns are matching today's price action, the Bearish Harami Cross Pattern, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji. The last time a Northern Doji showed up on May 29th, BHC actually gained 3.68% on the following trading day.
After trading down to 18.92 earlier during the day, the stock bounced off the key technical support level at 18.93 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move above 19.49 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 19.46.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 19.49 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 18.18 where further sell stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Bausch Health. Out of 63 times, BHC closed higher 55.56% 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 58.73% with an average market move of 1.91%.