BBD closes higher for the 3rd day in a row
Banco Bradesco Sa American Depositary Shares (BBD) Technical Analysis Report for Feb 11, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BBD finished Tuesday at 7.88 gaining $0.04 (0.51%), slightly outperforming the S&P 500 (0.17%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BBD as at Feb 11, 2020):
Tuesday's trading range has been $0.20 (2.49%), that's slightly 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 below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for BBD. Prices continued to consolidate within a tight trading range between 7.65 and 8.03 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on February 6th, BBD actually gained 0.26% on the following trading day.
Unable to break through the key technical resistance level at 8.03 (R1), the share closed below it after spiking up to 8.03 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
With prices trading close to this year's low at 7.56, downside momentum might speed up should the market break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Banco Bradesco. Out of 384 times, BBD closed lower 53.13% 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 50.78% with an average market move of -0.11%.