BJRI dominated by bears dragging the market lower throughout the day
BJ's Restaurants Inc. (BJRI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
BJRI finished Wednesday at 36.19 losing $0.83 (-2.24%), strongly underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 36.21, the share confirmed its breakout through the prior session low after trading up to $0.13 below it intraday.
Daily Candlestick Chart (BJRI as at Sep 16, 2020):
Wednesday's trading range has been $1.23 (3.3%), that's below the last trading month's daily average range of $1.77. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BJRI.
Notwithstanding a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 11th, BJRI actually gained 4.37% on the following trading day.
Prices are trading close to the key technical support level at 35.85 (S1). After having been unable to move lower than 36.21 in the prior session, the stock found buyers again around the same price level today at 36.08.
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 37.61 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for BJ's Restaurants. Out of 99 times, BJRI closed higher 54.55% 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 55.56% with an average market move of 1.31%.