BBD closes above its opening price after recovering from early selling pressure
Banco Bradesco Sa American Depositary Shares (BBD) Technical Analysis Report for Feb 07, 2020 | by Techniquant Editorial Team
BBD finished the week 2.23% higher at 7.80 after edging higher $0.02 (0.26%) today, outperforming the S&P 500 (-0.54%). Trading up to $0.08 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 17th, BBD actually lost -6.16% on the following trading day. 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 07, 2020):
Friday's trading range has been $0.24 (3.1%), that's above the last trading month's daily average range of $0.19. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BBD.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 7.65 earlier during the day, Banco Bradesco bounced off the key technical support level at 7.70 (S1). The failure to close below the support might increase that levels significance as support going forward. 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.
2019's low at 7.54 is within reach and we could see further downside momentum should the stock break out beyond.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Banco Bradesco. Out of 369 times, BBD closed higher 53.93% 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 six trading days, showing a win rate of 49.32% with an average market move of 0.22%.