SAM closes above its opening price after recovering from early selling pressure
Boston Beer Company Inc. (SAM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
SAM ended the month 51.02% higher at 810.44 after gaining $13.88 (1.74%) today, outperforming the S&P 500 (0.77%). Trading up to $14.89 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SAM as at Jul 31, 2020):
Friday's trading range has been $27.32 (3.41%), that's slightly below the last trading month's daily average range of $29.93. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SAM.
After having been unable to move lower than 790.37 in the prior session, the share found buyers again around the same price level today at 785.23. The last time this happened on July 23rd, SAM gained 25.65% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Boston Beer. Out of 451 times, SAM closed higher 51.88% 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 56.54% with an average market move of 1.28%.