BAC ends the day on a bearish note closing near the low of the day
Bank of America Corporation (BAC) Technical Analysis Report for Aug 20, 2019 | by Techniquant Editorial Team
BAC ended Tuesday at 26.72 losing $0.55 (-2.02%), significantly underperforming the S&P 500 (-0.79%). The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (BAC as at Aug 20, 2019):
Tuesday's trading range has been $0.36 (1.33%), that's far below the last trading month's daily average range of $0.69. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BAC.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on July 19th, BAC actually gained 0.58% on the following trading day.
Prices are trading close to the key technical support level at 26.40 (S1). Prices are trading close to the key technical resistance level at 27.12 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Bank of. Out of 588 times, BAC closed higher 54.08% 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 54.76% with an average market move of 0.74%.