BKNG closes above its opening price after recovering from early selling pressure
Booking Holdings Inc. (BKNG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BKNG ended Thursday at 1406.00 gaining $40.15 (2.94%) on low volume, significantly underperforming the Nasdaq 100 (5.72%). Trading up to $26.81 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 17th, BKNG actually lost -9.83% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BKNG as at Mar 26, 2020):
Thursday's trading range has been $72.48 (5.25%), that's below the last trading month's daily average range of $109.88. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BKNG.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Unable to break through the key technical resistance level at 1421.67 (R1), the share closed below it after spiking up to 1426.00 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 1449.48 where further buy stops might get triggered.
Among the four 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 bullish for Booking Holdings. Out of 734 times, BKNG closed higher 53.00% 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 10 trading days, showing a win rate of 59.13% with an average market move of 0.91%.