NBEV still stuck within tight trading range
New Age Beverages Corporation (NBEV) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
NBEV ended the month 48.37% higher at 2.27 after losing $0.10 (-4.22%) today, strongly underperforming the S&P 500 (0.77%). Trading $0.10 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NBEV as at Jul 31, 2020):
Friday's trading range has been $0.27 (11.34%), that's above the last trading month's daily average range of $0.18. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for NBEV. Prices continued to consolidate within a tight trading range between 2.17 and 2.48 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on April 9th, NBEV actually gained 11.11% on the following trading day. Despite a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to the key technical support level at 2.17 (S1). New Age found buyers again today around 2.21 for the third trading day in a row after having found demand at 2.25 in the previous session and at 2.21 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 2.17 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Its common bearish interpretation has been confirmed for New Age. Out of 55 times, NBEV closed lower 50.91% of the time on the next trading day after the market condition occurred.