BK drops to lowest close since December 24, 2018
Bank of New York Mellon Corporation (BK) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
BK finished the week -4.2% lower at 46.08 after losing $0.46 (-0.99%) today, slightly underperforming the S&P 500 (-0.58%). Today's close at 46.08 marks the lowest recorded closing price since December 24, 2018. Trading $0.67 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BK as at May 17, 2019):
Friday's trading range has been $0.76 (1.65%), that's slightly below the last trading month's daily average range of $0.89. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BK.
Three candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern, one bearish pattern, the Gravestone Doji and one neutral pattern, the Doji. The last time a Southern Doji showed up on April 18th, BK actually lost -0.45% on the following trading day.
Unable to break through the key technical resistance level at 46.13 (R1), Bank of closed below it after spiking up to 46.78 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the close-by swing high at 46.96 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Its common bullish interpretation has been confirmed for Bank of. Out of 60 times, BK closed higher 53.33% 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 63.33% with an average market move of 0.71%.