BKNG pushes through Thursday's high
Booking Holdings Inc. (BKNG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
BKNG ended the week 17.84% higher at 1631.30 after gaining $35.62 (2.23%) today, significantly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Today's close at 1631.30 marks the highest recorded closing price since March 5th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 1623.44, the stock confirmed its breakout through the prior session high after trading up to $13.34 above it intraday.
Daily Candlestick Chart (BKNG as at May 22, 2020):
Friday's trading range has been $52.13 (3.28%), that's slightly below the last trading month's daily average range of $56.82. 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 higher than usual for BKNG.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Prices are trading close to the key technical support level at 1592.45 (S1). After spiking up to 1636.78 during the day, Booking Holdings found resistance at the 100-day moving average at 1633.52. The share found buyers again today around 1584.65 for the third trading day in a row after having found demand at 1575.79 in the previous session and at 1578.20 two days ago. The last time this happened on March 20th, BKNG actually lost -2.14% on the following trading day.
Crossing above the upper Bollinger Band for the first time since Wednesday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 1460.66 or signal the beginning of a strong momentum breakout leading to even higher prices.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could accelerate should prices move below the close-by swing low at 1575.79 where further sell stops might get triggered. Trading close to March's high at 1749.99 we could see further upside momentum if potential buy stops at the level get activated.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Booking Holdings. Out of 442 times, BKNG closed higher 56.79% 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 61.99% with an average market move of 1.36%.