BJ finds buyers around 24.41 for the forth day in a row
BJ's Wholesale Club Holdings Inc. (BJ) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
BJ finished the week -0.89% lower at 24.54 after losing $0.22 (-0.89%) today, underperforming the S&P 500 (-0.16%). Trading $0.23 higher after the open, BJ's Wholesale was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, BJ actually gained 0.90% on the following trading day. 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 (BJ as at Jun 14, 2019):
Friday's trading range has been $0.52 (2.11%), that's below the last trading month's daily average range of $0.82. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for BJ. Prices continued to consolidate within a tight trading range between 24.22 and 25.07 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 24.38 (S1). The stock was bought again around 24.41 after having seen lows at 24.43, 24.42 and 24.36 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 24.95 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 24.22 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous three Lows" stand out. Its common bullish interpretation has been confirmed for BJ's Wholesale. Out of 1 times, BJ closed higher 100.00% 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 three trading days, showing a win rate of 100.00% with an average market move of 2.51%.