BBD finds buyers again around 10.12
Banco Bradesco Sa American Depositary Shares (BBD) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BBD ended the week -0.49% lower at 10.19 after losing $0.06 (-0.59%) today, strongly underperforming the S&P 500 (0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BBD as at Jul 12, 2019):
Friday's trading range has been $0.20 (1.94%), that's slightly below the last trading month's daily average range of $0.23. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BBD.
Notwithstanding a strong opening the share closed below the previous day's open and close, forming a bearish Engulfing Candle.
Unable to break through the key technical resistance level at 10.31 (R1), the stock closed below it after spiking up to 10.32 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 10.09 in the prior session, Banco Bradesco found buyers again around the same price level today at 10.12. The last time this happened on June 21st, BBD gained 1.65% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 10.09 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Banco Bradesco. Out of 449 times, BBD closed higher 50.33% 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 seven trading days, showing a win rate of 52.12% with an average market move of 0.16%.