BLMN breaks below key technical support level
Bloomin' Brands Inc. (BLMN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BLMN finished the month 8.07% higher at 11.52 after losing $0.25 (-2.12%) today, significantly underperforming the S&P 500 (0.77%). Closing below Thursday's low at 11.53, Bloomin' Brands confirmed its breakout through the previous session low after trading up to $0.16 below it intraday.
Daily Candlestick Chart (BLMN as at Jul 31, 2020):
Friday's trading range has been $0.32 (2.75%), that's far below the last trading month's daily average range of $0.59. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BLMN.
Prices broke below the key technical support level at 11.56 (now R1), which is likely to act as resistance going forward. The last time this happened on July 13th, BLMN lost -0.21% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 12.06 where further buy stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Bloomin' Brands. Out of 245 times, BLMN closed higher 52.24% of the time on the next trading day after the market condition occurred.