EPAY closes higher for the 2nd day in a row
Bottomline Technologies Inc. (EPAY) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EPAY finished the week -0.71% lower at 43.32 after gaining $0.46 (1.07%) today on low volume, outperforming the S&P 500 (0.46%). Trading up to $0.44 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 43.24, the stock confirmed its breakout through the previous session high after trading up to $0.16 above it intraday.
Daily Candlestick Chart (EPAY as at Jul 12, 2019):
Friday's trading range has been $0.80 (1.86%), that's below the last trading month's daily average range of $1.00. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EPAY. Prices continued to consolidate within a tight trading range between 42.06 and 43.40 where it has been caught now for the whole last trading week.
After trading down to 42.60 earlier during the day, Bottomline Technologies bounced off the key technical support level at 42.84 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on June 12th, EPAY gained 1.65% on the following trading day. Prices are trading close to the key technical resistance level at 44.00 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 42.19 where further sell stops might get activated. As prices are trading close to July's high at 44.83, upside momentum could speed up should the market mark new highs for the month. Further selling might move prices lower should the market test June's nearby low at 41.67.
Among the eight 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 Bottomline Technologies. Out of 525 times, EPAY closed higher 55.62% 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 55.24% with an average market move of 0.94%.