BAC closes lower for the 5th day in a row
Bank of America Corporation (BAC) Technical Analysis Report for Jun 25, 2019 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, BAC ended Tuesday at 27.76 losing $0.22 (-0.79%), but still slightly outperforming the S&P 500 (-0.95%). Closing below Monday's low at 27.89, Bank of confirmed its breakout through the prior session low after trading up to $0.51 below it intraday.
Daily Candlestick Chart (BAC as at Jun 25, 2019):
Tuesday's trading range has been $0.64 (2.28%), that's slightly above the last trading month's daily average range of $0.57. 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 BAC.
The market closed below the 20-day moving average at 27.83 for the first time since June 7th. When this moving average was crossed below the last time on May 7th, BAC lost -0.40% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Bank of. Out of 25 times, BAC closed higher 56.00% 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 60.00% with an average market move of 0.88%.