SBH closes above its opening price after recovering from early selling pressure
Sally Beauty Holdings Inc. (SBH) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SBH finished Wednesday at 10.86 gaining $0.15 (1.4%), notably outperforming the S&P 500 (-0.46%). Trading up to $0.26 lower after the open, the share 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 failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SBH as at Sep 16, 2020):
Wednesday's trading range has been $0.57 (5.31%), that's far above the last trading month's daily average range of $0.45. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SBH.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
The market ran into sellers again today around 11.05 for the third trading day in a row after having found sellers at 11.05 in the prior session and at 11.09 two days ago. The last time this happened on August 17th, SBH lost -4.65% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 11.58.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Sally Beauty. Out of 209 times, SBH closed higher 52.15% 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 57.89% with an average market move of 1.02%.