BKNG closes above its opening price after recovering from early selling pressure
Booking Holdings Inc. (BKNG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
BKNG finished the month -2.87% lower at 1592.34 after edging lower $0.88 (-0.06%) today on low volume, notably underperforming the Nasdaq 100 (1.96%). Trading up to $17.48 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BKNG as at Jun 30, 2020):
Tuesday's trading range has been $36.82 (2.32%), that's far below the last trading month's daily average range of $62.66. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BKNG.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Prices are trading close to the key technical support level at 1590.93 (S1). After having been unable to move above 1595.30 in the previous session, Booking Holdings ran into sellers again around the same price level today, failing to move higher than 1603.24. The last time this happened on June 24th, BKNG actually gained 0.31% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 1532.83 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Booking Holdings. Out of 119 times, BKNG closed higher 52.94% 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 60.50% with an average market move of 0.47%.