BBD dominated by bears dragging the market lower throughout the day
Banco Bradesco Sa American Depositary Shares (BBD) Technical Analysis Report for Feb 05, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BBD finished Wednesday at 7.87 gaining $0.11 (1.42%), slightly outperforming the S&P 500 (1.13%) ahead of Thursday's earnings report. The bears were in full control today, moving the market lower throughout the whole session. 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 Feb 05, 2020):
BBD is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $0.2 per share. The company's last earnings report was released on Oct. 30, 2019, when Banco Bradesco Sa American Depositary Shares reported earnings of $0.2 per share surpassing market expectations by 5.3%.
Wednesday's trading range has been $0.15 (1.88%), that's slightly below the last trading month's daily average range of $0.18. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BBD.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 7.72 (S1). Prices are trading close to the key technical resistance level at 7.92 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 7.72 where further sell stops might get triggered. 2019's low at 7.54 is within reach and we could see further downside momentum should the share break out beyond.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Banco Bradesco. Out of 273 times, BBD closed higher 50.18% of the time on the next trading day after the market condition occurred.