BK climbs to highest close since December 17, 2018
Bank of New York Mellon Corporation (BK) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
BK finished the week 0.35% higher at 48.08 after gaining $0.61 (1.29%) today, significantly outperforming the S&P 500 (-0.01%). Today's close at 48.08 marks the highest recorded closing price since December 17, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 47.92, the share confirmed its breakout through the prior session high after trading up to $0.37 above it intraday.
Daily Candlestick Chart (BK as at Jan 11, 2019):
Friday's trading range has been $1.43 (3.04%), that's slightly above the last trading month's daily average range of $1.36. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BK. Prices continued to consolidate within a tight trading range between 46.86 and 48.33 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading as low as 46.86 during the day, the stock found support at the 20-day moving average at 46.98. The last time this happened on October 9, 2018, BK actually lost -2.89% on the following trading day. After spiking up to 48.29 during the day, Bank of found resistance at the 50-day moving average at 48.15.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 48.33 where further buy stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Bank of. Out of 26 times, BK closed higher 65.38% 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 two trading days, showing a win rate of 69.23% with an average market move of 0.44%.