BBD closes within prior day's range
Banco Bradesco Sa American Depositary Shares (BBD) Technical Analysis Report for Jan 14, 2020 | by Techniquant Editorial Team
BBD ended Tuesday at 8.38 edging higher $0.03 (0.36%), outperforming the S&P 500 (-0.15%). Trading up to $0.07 lower after the open, Banco Bradesco managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jan 14, 2020):
Tuesday's trading range has been $0.14 (1.68%), that's slightly 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.
Despite a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle.
After trading as low as 8.24 during the day, the share found support at the 100-day moving average at 8.30. The last time this happened on October 30, 2019, BBD actually lost -3.74% on the following trading day.
Though 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 Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. Its common bullish interpretation has been confirmed for Banco Bradesco. Out of 23 times, BBD closed higher 56.52% 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 47.83% with an average market move of -0.02%.