The Bon-Ton Stores, Inc. (NASDAQ:BONT) shares surged 11.05% during trading on Thursday, going up from its prior closing price of $0.61 to $0.68 , and has now gained 3 consecutive sessions. Many in the market will be closely watching whether this winning streak is sustainable or take a temporary pause for the next couple of trading sessions. The price has fallen in 6 of the last 10 days , but is still up by 50.05% during the last two weeks. The upbeat movement of both volume and price during the recent session is interpreted as a good sign, and, overall 0.59 million more shares exchanged hands compared with prior day. In total, 1.44 M shares exchanged hands for about $978 448.
Inside BONT’s Recent Trend
The Bon-Ton Stores, Inc. (BONT) lies the upper part of a very wide and falling trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break down through the support point at $0.77 will initially suggest a lower tendency for declines in the price and this might very well be an early sign that a trend shift is coming. Short-term traders are anticipated to see a retreat of -26.08% over the course of a quarter and, with 90% chance the price will be floating in the range of $0.21 and $0.57 in this timeframe.
The Bon-Ton Stores, Inc. Technical Signals
BONT has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $0.63 and $0.50. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Tuesday July 18, 2017, which calls for additional surge until the stock forms a new pivot point high. The Bon-Ton Stores has rising volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. Higher liquidity also reduces the general risk.
The Bon-Ton Stores, Inc. (NASDAQ:BONT) Support And Resistance Levels
In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $0.64 and $0.61. In case of gains, the next resistance from accumulated volume will be at $0.77, $0.79 and $0.83.
It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, The Bon-Ton Stores approaches the first support point just current price at $0.64. In case of a break, the next support we will see from accumulated volume is going to be at $0.61 and $0.57.
The Bon-Ton Stores, Inc. (BONT) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.14 between high and low, or 22.95%. The average volatility for the past week stood at 33.46%.