BBT breaks above 100-day moving average for the first time since August 22nd
BB&T Corporation (BBT) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
BBT ended the week 3.23% higher at 50.76 after gaining $0.63 (1.26%) today on high volume, strongly outperforming the S&P 500 (-0.92%). Today's close at 50.76 marks the highest recorded closing price since September 21st. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 50.33, the stock confirmed its breakout through the prior session high after trading up to $0.63 above it intraday.
Daily Candlestick Chart (BBT as at Nov 09, 2018):
Friday's trading range has been $0.80 (1.59%), that's below the last trading month's daily average range of $1.07. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BBT.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on Tuesday, BBT actually gained 0.36% on the following trading day.
The market managed to close above the 100-day moving average at 50.45 for the first time since August 22nd. Prices are trading close to the key technical resistance level at 50.97 (R1).
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Trading close to September's high at 52.58 we might see further upside momentum if potential buy stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for BB&T. Out of 78 times, BBT closed lower 52.56% 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 five trading days, showing a win rate of 51.28% with an average market move of -0.21%.