SBH breaks below Thursday's low
Sally Beauty Holdings Inc. (SBH) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
SBH finished the week 0.23% higher at 13.23 after losing $0.27 (-2.0%) today, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 13.31, the share confirmed its breakout through the previous session low after trading up to $0.15 below it intraday.
Daily Candlestick Chart (SBH as at Feb 14, 2020):
Friday's trading range has been $0.46 (3.41%), that's slightly below the last trading month's daily average range of $0.56. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SBH.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on January 28th, SBH actually gained 0.06% on the following trading day.
Prices are trading close to the key technical support level at 13.02 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 13.02 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Sally Beauty. Out of 441 times, SBH 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 53.06% with an average market move of 0.47%.