BBT breaks below Tuesday's low

Overview

BBT ended Wednesday at 50.46 losing $0.36 (-0.71%), significantly underperforming the S&P 500 (0.3%). Closing below Tuesday's low at 50.50, the market confirmed its breakout through the previous session low after trading up to $0.20 below it intraday.

Daily Candlestick Chart (BBT as at Feb 13, 2019):

Wednesday's trading range has been $0.74 (1.46%), that's slightly below the last trading month's daily average range of $0.86. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for BBT.

After having been unable to move above 51.14 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 51.04. The last time this happened on Monday, BBT actually gained 0.49% on the following trading day.

While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.

Buying could speed up should prices move above the close-by swing high at 51.14 where further buy stops might get triggered. Trading close to December's high at 51.77 we could see further upside momentum if potential buy stops at the level get activated.

Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for BB&T. Out of 602 times, BBT closed higher 50.83% 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 10 trading days, showing a win rate of 56.64% with an average market move of 0.66%.