BBT closes lower for the 3rd day in a row
BB&T Corporation (BBT) Technical Analysis Report for Dec 06, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BBT ended Thursday at 48.14 losing $0.23 (-0.48%) on high volume, slightly underperforming the S&P 500 (-0.15%) ahead of tomorrow's NFP report. Today's close at 48.14 marks the lowest recorded closing price since October 29th. Trading up to $0.65 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BBT as at Dec 06, 2018):
Thursday's trading range has been $1.27 (2.67%), that's slightly above the last trading month's daily average range of $1.11. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BBT.
After trading down to 46.91 earlier during the day, the stock bounced off the key technical support level at 47.48 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on November 23rd, BBT gained 1.49% on the following trading day. Prices are trading close to the key technical resistance level at 49.01 (R1).
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 50.56.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 45.93, downside momentum could 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 Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for BB&T. Out of 122 times, BBT closed higher 60.66% 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 nine trading days, showing a win rate of 56.56% with an average market move of 0.17%.