EPAY closes within prior day's range
Bottomline Technologies Inc. (EPAY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EPAY ended the month -4.94% lower at 48.26 after losing $0.48 (-0.98%) today on high volume, notably underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EPAY as at Jul 31, 2020):
Friday's trading range has been $2.18 (4.46%), that's above the last trading month's daily average range of $1.83. 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 slightly lower than usual for EPAY. Prices continued to consolidate within a tight trading range between 46.80 and 49.43 where it has been caught now for the whole last trading week.
Despite a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle.
The share closed back below the 20-day moving average at 48.39. When this moving average was crossed below the last time on Tuesday, EPAY actually gained 3.06% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the nearby swing high at 49.43 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Bottomline Technologies. Out of 156 times, EPAY closed higher 62.18% 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 57.05% with an average market move of 1.19%.