NBEV closes below its opening price unable to hold early session gains
New Age Beverages Corporation (NBEV) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
NBEV ended Monday at 1.49 losing $0.02 (-1.32%), strongly underperforming the S&P 500 (0.38%). Trading $0.04 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NBEV as at Jun 01, 2020):
Monday's trading range has been $0.11 (7.33%), that's slightly below the last trading month's daily average range of $0.13. 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 NBEV.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on May 19th, NBEV actually gained 8.82% on the following trading day.
After trading down to 1.43 earlier during the day, New Age bounced off the key technical support level at 1.44 (S1). The failure to close below the support might increase that levels importance as support going forward.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 1.60 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 1.41 where further sell stops might get activated. Further buying could move prices higher should the market test May's nearby high at 1.67. Further selling might move prices lower should the market test May's close-by low at 1.23.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for New Age. Out of 401 times, NBEV closed lower 50.37% of the time on the next trading day after the market condition occurred.