HAS closes above its opening price after recovering from early selling pressure
Hasbro Inc. (HAS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HAS finished the month -2.92% lower at 72.76 after losing $0.54 (-0.74%) today, strongly underperforming the Nasdaq 100 (1.78%). Trading up to $1.43 lower after the open, Hasbro managed to reverse during the session as bulls took control ending the day above 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 (HAS as at Jul 31, 2020):
Friday's trading range has been $1.76 (2.43%), that's below the last trading month's daily average range of $2.35. 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 HAS.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Takuri Line which are both known as bullish patterns. The last time a Bullish Hikkake Pattern showed up on June 18th, HAS actually lost -5.08% on the following trading day.
After trading down to 71.10 earlier during the day, the market bounced off the key technical support level at 72.07 (S1). The failure to close below the support might increase that levels significance as support going forward.
While the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 74.58 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 70.78 where further sell stops could get activated. Further selling might move prices lower should the market test June's close-by low at 69.33.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Hasbro. Out of 546 times, HAS closed higher 53.30% 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 55.31% with an average market move of 0.25%.