BBD snaps to lowest close since October 29, 2018
Banco Bradesco Sa American Depositary Shares (BBD) Technical Analysis Report for Feb 13, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BBD finished Thursday at 7.61 losing $0.16 (-2.06%), notably underperforming the S&P 500 (-0.16%). Today's close at 7.61 marks the lowest recorded closing price since October 29, 2018. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BBD as at Feb 13, 2020):
Thursday's trading range has been $0.15 (1.96%), that's below the last trading month's daily average range of $0.19. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for BBD.
Unable to break through the key technical resistance level at 7.70 (R1), the stock closed below it after spiking up to 7.71 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Tuesday, BBD lost -1.40% on the following trading day.
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 might see further downside momentum should the share 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 Resistance R1" stand out. Its common bearish interpretation has been confirmed for Banco Bradesco. Out of 385 times, BBD closed lower 53.25% 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 50.65% with an average market move of -0.11%.