HAS pushes through Tuesday's high
Hasbro Inc. (HAS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HAS ended Wednesday at 78.51 gaining $1.10 (1.42%) on high volume, strongly outperforming the Nasdaq 100 (-1.67%). Closing above Tuesday's high at 78.44, the market confirmed its breakout through the prior session high after trading up to $1.57 above it intraday.
Daily Candlestick Chart (HAS as at Sep 16, 2020):
Wednesday's trading range has been $3.36 (4.38%), that's far above the last trading month's daily average range of $2.41. 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 HAS. Prices continued to consolidate within a tight trading range between 76.40 and 80.43 where it has been caught now for the whole last trading week.
Even with a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 76.65 earlier during the day, the stock bounced off the key technical support level at 76.77 (S1). The failure to close below the support could increase that levels significance as support going forward. After spiking up to 80.01 during the day, Hasbro found resistance at the 20-day moving average at 79.12. After having been unable to move lower than 76.40 in the prior session, HAS found buyers again around the same price level today at 76.65. The last time this happened on September 11th, HAS actually lost -1.87% on the following trading day.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 80.43 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 76.40 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Hasbro. Out of 71 times, HAS closed higher 54.93% 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 60.56% with an average market move of 1.07%.