URBN closes above its opening price after recovering from early selling pressure
Urban Outfitters Inc. (URBN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, URBN finished the month -10.15% lower at 15.22 after edging higher $0.19 (1.26%) today, slightly underperforming the S&P 500 (1.54%). Trading up to $0.32 lower after the open, Urban Outfitters managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (URBN as at Jun 30, 2020):
Tuesday's trading range has been $0.79 (5.33%), that's far below the last trading month's daily average range of $1.17. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for URBN.
In spite of a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After trading down to 14.50 earlier during the day, the market bounced off the key technical support level at 14.63 (S1). The failure to close below the support might increase that levels significance as support going forward. The share found buyers again today around 14.50 for the third trading day in a row after having found demand at 14.41 in the prior session and at 14.57 two days ago. The last time this happened on June 23rd, URBN actually lost -5.77% on the following trading day.
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 nearby swing low at 14.41 where further sell stops might get triggered.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Urban Outfitters. Out of 136 times, URBN closed higher 55.88% 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 53.68% with an average market move of 0.72%.