PLAY rises to highest close since June 11th
Dave & Buster's Entertainment Inc. (PLAY) Technical Analysis Report for Sep 10, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PLAY ended Tuesday at 43.72 gaining $1.22 (2.87%) on high volume, significantly outperforming the S&P 500 (0.03%). Today's close at 43.72 marks the highest recorded closing price since June 11th. Closing above Monday's high at 42.86, the share confirmed its breakout through the previous session high after trading up to $1.37 above it intraday.
Daily Candlestick Chart (PLAY as at Sep 10, 2019):
Tuesday's trading range has been $2.53 (5.96%), that's far above the last trading month's daily average range of $1.24. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for PLAY.
Buyers managed to take out the key technical resistance level at 43.14 (now S1), which is likely to act as support going forward. The last time this happened on August 28th, PLAY gained 1.98% on the following trading day. The market was bought again around 41.70 after having seen lows at 41.56, 41.62 and 41.54 in the last three trading sessions. Obviously there is something going on at that level.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior three Lows" stand out. Its common bullish interpretation has been confirmed for Dave & Buster's. Out of 20 times, PLAY closed higher 60.00% 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 65.00% with an average market move of 3.06%.