URBN finds buyers again around 16.89
Urban Outfitters Inc. (URBN) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
URBN finished Monday at 17.32 gaining $0.38 (2.24%), notably outperforming the S&P 500 (0.38%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (URBN as at Jun 01, 2020):
Monday's trading range has been $1.06 (6.21%), that's slightly below the last trading month's daily average range of $1.16. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for URBN.
After moving lower in the previous session, Urban Outfitters managed to close higher but below the prior day's open, forming a bullish Harami Candle.
The stock managed to close back above the 20-day moving average at 17.10. Unable to break through the key technical resistance level at 17.64 (R1), the market closed below it after spiking up to 17.95 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 16.76 in the previous session, the share found buyers again around the same price level today at 16.89. The last time this happened on May 19th, URBN actually lost -7.75% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the close-by swing low at 16.76 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Urban Outfitters. Out of 65 times, URBN closed higher 53.85% 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 55.38% with an average market move of 1.25%.