OSTK closes within previous day's range
Overstock.com Inc. (OSTK) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
OSTK finished Tuesday at 15.55 gaining $0.46 (3.05%), strongly outperforming the S&P 500 (0.05%). Trading up to $0.54 lower after the open, Overstock. com managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on April 12th, OSTK actually lost -7.14% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (OSTK as at Apr 16, 2019):
Tuesday's trading range has been $1.21 (8.0%), that's slightly above the last trading month's daily average range of $1.07. 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 OSTK.
Prices are trading close to the key technical resistance level at 15.94 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 16.43 where further buy stops might get triggered. With prices trading close to this year's low at 13.10, downside momentum could speed up should the share break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Overstock. com. Out of 472 times, OSTK closed lower 52.33% of the time on the next trading day after the market condition occurred.