BKNG finds buyers again around 1787.90
Booking Holdings Inc. (BKNG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BKNG ended Wednesday at 1806.66 gaining $19.66 (1.1%), strongly outperforming the Nasdaq 100 (-1.67%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BKNG as at Sep 16, 2020):
Wednesday's trading range has been $49.93 (2.77%), that's slightly above the last trading month's daily average range of $49.47. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BKNG. Prices continued to consolidate within a tight trading range between 1774.60 and 1837.83 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on August 10th, BKNG gained 2.06% on the following trading day.
After trading down to 1787.90 earlier during the day, the stock bounced off the key technical support level at 1792.39 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move lower than 1785.00 in the previous session, Booking Holdings found buyers again around the same price level today at 1787.90.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the nearby swing low at 1769.98 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Booking Holdings. Out of 406 times, BKNG closed higher 57.39% 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 57.14% with an average market move of 0.91%.