BK closes lower for the 4th day in a row
The Bank of New York Mellon Corp. (BK) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, BK finished the week -6.64% lower at 49.10 after edging lower $0.09 (-0.18%) today, notably underperforming the S&P 500 (1.42%). Today's close at 49.10 marks the lowest recorded closing price since June 8, 2017. Closing below Thursday's low at 49.13, The Bank confirmed its breakout through the prior session low after trading up to $0.88 below it intraday.
Daily Candlestick Chart (BK as at Oct 12, 2018):
Friday's trading range has been $2.26 (4.47%), that's far above the last trading month's daily average range of $0.92. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for BK.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on September 26th, BK actually lost -0.73% on the following trading day.
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 while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 51.80.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for The Bank. Out of 48 times, BK closed higher 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 long side has been after 10 trading days, showing a win rate of 64.58% with an average market move of 2.16%.