BBD finds buyers at key support level
Banco Bradesco Sa American Depositary Shares (BBD) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, BBD finished Tuesday at 9.99 losing $0.04 (-0.4%) on low volume, slightly underperforming the S&P 500 (-0.34%). Trading $0.05 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BBD as at Jul 16, 2019):
Tuesday's trading range has been $0.14 (1.4%), that's far below the last trading month's daily average range of $0.23. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BBD.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 9.93 earlier during the day, Banco Bradesco bounced off the key technical support level at 9.96 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on July 2nd, BBD gained 1.23% on the following trading day.
The trend is clearly bullish, showing an intact uptrend 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 "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Banco Bradesco. Out of 306 times, BBD closed higher 52.94% 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 53.59% with an average market move of 0.42%.