BLMN finds buyers again around 7.11
Bloomin' Brands Inc. (BLMN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, BLMN ended Thursday at 7.84 edging higher $0.12 (1.55%), strongly underperforming the S&P 500 (6.24%). Trading $0.44 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BLMN as at Mar 26, 2020):
Thursday's trading range has been $1.18 (15.03%), that's below the last trading month's daily average range of $1.51. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BLMN.
One neutral candlestick pattern matches today's price action, the Doji.
Prices are trading close to the key technical resistance level at 9.14 (R1). After having been unable to move lower than 7.32 in the previous session, Bloomin' Brands found buyers again around the same price level today at 7.11. The last time this happened on Monday, BLMN gained 29.64% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 9.14 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Bloomin' Brands. Out of 58 times, BLMN closed lower 56.90% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after eight trading days, showing a win rate of 56.90% with an average market move of -0.28%.