NBEV closes higher for the 5th day in a row
New Age Beverages Corporation (NBEV) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, NBEV ended the week 21.09% higher at 1.55 after gaining $0.02 (1.31%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.07 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NBEV as at May 22, 2020):
Friday's trading range has been $0.15 (10.0%), that's above the last trading month's daily average range of $0.12. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NBEV.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
After trading down to 1.43 earlier during the day, the share bounced off the key technical support level at 1.44 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move lower than 1.41 in the previous session, the stock found buyers again around the same price level today at 1.43. The last time this happened on May 11th, NBEV actually lost -5.41% on the following trading day.
New Age shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 1.60 where further buy stops could get activated. As prices are trading close to May's high at 1.67, upside momentum might accelerate should NBEV mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for New Age. Out of 146 times, NBEV closed lower 53.42% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after nine trading days, showing a win rate of 60.96% with an average market move of 0.59%.