BKNG drops to lowest close since July 8th
Booking Holdings Inc. (BKNG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BKNG ended the month 4.38% higher at 1662.13 after losing $25.61 (-1.52%) today, strongly underperforming the Nasdaq 100 (1.78%). Today's close at 1662.13 marks the lowest recorded closing price since July 8th. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BKNG as at Jul 31, 2020):
Friday's trading range has been $63.57 (3.77%), that's far above the last trading month's daily average range of $46.65. 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 lower than usual for BKNG.
One bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern.
The share closed below the 50-day moving average at 1679.77 for the first time since June 26th. When this moving average was crossed below the last time on June 26th, BKNG actually gained 3.37% on the following trading day.
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to July's low at 1601.14, downside momentum could accelerate should the market mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Booking Holdings. Out of 300 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 60.00% with an average market move of 1.07%.