BBD snaps to lowest close since December 17, 2019
Banco Bradesco Sa American Depositary Shares (BBD) Technical Analysis Report for Jan 09, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, BBD finished Thursday at 8.56 losing $0.15 (-1.72%), significantly underperforming the S&P 500 (0.67%). Today's close at 8.56 marks the lowest recorded closing price since December 17, 2019. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BBD as at Jan 09, 2020):
Thursday's trading range has been $0.12 (1.4%), that's below the last trading month's daily average range of $0.16. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BBD.
Three candlestick patterns are matching today's price action, the Southern Doji and the Takuri Line which are both known as bullish patterns and one neutral pattern, the Doji. The last time a Doji showed up on Tuesday, BBD lost -1.58% on the following trading day.
Prices are trading close to the key technical resistance level at 8.65 (R1).
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Banco Bradesco. Out of 72 times, BBD closed lower 51.39% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 59.72% with an average market move of -1.76%.