BK breaks below Thursday's low
Bank of New York Mellon Corporation (BK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BK ended the week -2.86% lower at 45.90 after edging lower $0.13 (-0.28%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 45.96, the share confirmed its breakout through the previous session low after trading up to $0.27 below it intraday.
Daily Candlestick Chart (BK as at Feb 14, 2020):
Friday's trading range has been $0.54 (1.17%), that's far below the last trading month's daily average range of $0.82. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for BK.
Unable to break through the key technical resistance level at 46.18 (R1), Bank of closed below it after spiking up to 46.23 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on February 7th, BK lost -1.61% on the following trading day.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to February's low at 44.92, downside momentum could speed up should the stock mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Bank of. Out of 289 times, BK closed higher 54.67% 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 58.13% with an average market move of 0.33%.