BBD falls to lowest close since December 11, 2019
Banco Bradesco Sa American Depositary Shares (BBD) Technical Analysis Report for Jan 13, 2020 | by Techniquant Editorial Team
Moving lower for the 6th day in a row, BBD ended Monday at 8.35 edging lower $0.02 (-0.24%), underperforming the S&P 500 (0.7%). Today's close at 8.35 marks the lowest recorded closing price since December 11, 2019. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BBD as at Jan 13, 2020):
Monday's trading range has been $0.09 (1.08%), that's far 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 above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BBD.
Three candlestick patterns are matching today's price action, the Bullish Doji Star and the Southern Doji which are both known as bullish patterns and one neutral pattern, the Doji. The last time a Bullish Doji Star showed up on March 24, 2016, BBD gained 5.94% on the following trading day.
Unable to break through the key technical resistance level at 8.36 (R1), the share closed below it after spiking up to 8.41 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 8.34 in the previous session, Banco Bradesco found buyers again around the same price level today at 8.32.
While 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 "Bullish Doji Star" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Banco Bradesco. Out of 6 times, BBD closed lower 66.67% 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 50.00% with an average market move of -0.43%.