BBD tanks, losing $0.32 (-7.05%) within a single day
Banco Bradesco Sa American Depositary Shares (BBD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BBD finished the month 10.76% higher at 4.22 after tanking $0.32 (-7.05%) today, notably underperforming the S&P 500 (0.77%). This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on June 11th, BBD actually gained 5.43% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (BBD as at Jul 31, 2020):
Friday's trading range has been $0.20 (4.54%), that's above the last trading month's daily average range of $0.15. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BBD.
Two candlestick patterns are matching today's price action, the Bearish Belt-hold and the Black Candle which are both known as bearish patterns.
Banco Bradesco closed below the 20-day moving average at 4.27 for the first time since July 7th.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could accelerate should prices move below the close-by swing low at 4.17 where further sell stops might get triggered.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Belt-hold" stand out. Its common bearish interpretation has been confirmed for Banco Bradesco. Out of 15 times, BBD closed lower 66.67% 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 60.00% with an average market move of -2.21%.