BIO closes within previous day's range after lackluster session
Bio-Rad Laboratories Inc. Class A (BIO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
BIO ended Thursday at 341.26 gaining $8.26 (2.48%), notably underperforming the S&P 500 (6.24%). Trading up to $7.36 lower after the open, Bio-Rad Laboratories 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 in a lackluster session.
Daily Candlestick Chart (BIO as at Mar 26, 2020):
Thursday's trading range has been $13.72 (4.07%), that's below the last trading month's daily average range of $20.93. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BIO. Prices continued to consolidate within a tight trading range between 330.01 and 349.50 where it has been caught now for the last three trading days.
After moving lower in the prior session, the stock managed to close higher but below the previous day's open, forming a bullish Harami Candle.
Prices are trading close to the key technical resistance level at 345.77 (R1). The share found buyers again today around 330.01 for the third trading day in a row after having found demand at 330.31 in the prior session and at 330.02 two days ago. The last time this happened on March 19th, BIO actually lost -5.13% on the following trading day.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the nearby swing high at 349.50 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Bio-Rad Laboratories. Out of 860 times, BIO closed higher 52.67% 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 57.09% with an average market move of 0.82%.