BKD dominated by bears dragging the market lower throughout the day
Brookdale Senior Living Inc. (BKD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
BKD finished the month -6.1% lower at 2.77 after losing $0.19 (-6.42%) today, strongly underperforming the S&P 500 (0.77%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 2.82, the share confirmed its breakout through the prior session low after trading up to $0.06 below it intraday.
Daily Candlestick Chart (BKD as at Jul 31, 2020):
Friday's trading range has been $0.21 (7.12%), that's slightly above the last trading month's daily average range of $0.20. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BKD.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 2.70 (S1). The market ran into sellers again today around 2.97 for the third trading day in a row after having found sellers at 2.99 in the previous session and at 2.96 two days ago. The last time this happened on July 20th, BKD actually gained 9.47% on the following trading day.
Though Brookdale Senior is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 2.99 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 2.56 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for Brookdale Senior. Out of 693 times, BKD closed lower 52.53% 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 10 trading days, showing a win rate of 53.25% with an average market move of -0.21%.