OHI closes below its opening price unable to hold early session gains
Omega Healthcare Investors Inc. (OHI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
OHI ended the month -4.53% lower at 29.73 after losing $0.23 (-0.77%) today, strongly underperforming the S&P 500 (1.54%). Trading $0.54 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 11th, OHI actually gained 2.43% on the following trading day. 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 (OHI as at Jun 30, 2020):
Tuesday's trading range has been $1.13 (3.77%), that's below the last trading month's daily average range of $1.54. 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 OHI.
After moving higher in the previous session, the market closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 29.08 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 30.70 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Omega Healthcare. Out of 227 times, OHI closed higher 53.74% 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 58.59% with an average market move of 0.45%.