SAM dominated by bears dragging the market lower throughout the day
Boston Beer Company Inc. (SAM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SAM ended the month -4.97% lower at 536.65 after losing $10.98 (-2.01%) today, significantly underperforming the S&P 500 (1.54%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 540.24, Boston Beer confirmed its breakout through the previous session low after trading up to $5.92 below it intraday.
Daily Candlestick Chart (SAM as at Jun 30, 2020):
Tuesday's trading range has been $18.64 (3.39%), that's slightly below the last trading month's daily average range of $22.29. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SAM.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on May 1st, SAM gained 1.88% on the following trading day.
Prices are trading close to the key technical support level at 533.59 (S1).
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 519.17 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Boston Beer. Out of 287 times, SAM closed higher 62.02% 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 55.40% with an average market move of 0.76%.