BIO soars $24.29 (6.4%) after posting weak earnings
Bio-Rad Laboratories Inc. Class A (BIO) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, BIO ended the week 9.0% higher at 403.63 after surging $24.29 (6.4%) today on high volume, significantly outperforming the S&P 500 (0.18%) following Thursday's earnings report. This is the biggest single-day gain in over six months. Today's close at 403.63 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 381.37, Bio-Rad Laboratories confirmed its breakout through the prior session high after trading up to $23.46 above it intraday.
Daily Candlestick Chart (BIO as at Feb 14, 2020):
BIO reported earnings of $2.32 per share after Thursday's market close. With analysts having expected an EPS of $2.45, Bio-Rad Laboratories Inc. Class A missed market expectations by -5.3%. The company's last earnings report was released on Oct. 31, 2019, when Bio-Rad Laboratories Inc. Class A reported earnings of $1.61 per share surpassing market expectations by 17.5%.
Friday's trading range has been $24.13 (6.34%), that's far above the last trading month's daily average range of $7.07. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BIO.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 391.22 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since January 9th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 372.59 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 January 9th, BIO actually lost -1.34% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 15 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for Bio-Rad Laboratories. Out of 56 times, BIO closed lower 55.36% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after eight trading days, showing a win rate of 55.36% with an average market move of -0.10%.