BK closes higher for the 3rd day in a row
Bank of New York Mellon Corporation (BK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BK finished Thursday at 33.00 gaining $1.36 (4.3%) on low volume, significantly underperforming the S&P 500 (6.24%). Trading up to $0.97 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 32.89, the share confirmed its breakout through the previous session high after trading up to $0.28 above it intraday.
Daily Candlestick Chart (BK as at Mar 26, 2020):
Thursday's trading range has been $2.21 (6.92%), that's slightly below the last trading month's daily average range of $2.53. 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 slightly higher than usual for BK.
Prices are trading close to the key technical resistance level at 34.13 (R1). After having been unable to move above 32.89 in the prior session, Bank of ran into sellers again around the same price level today, missing to move higher than 33.17. The last time this happened on March 20th, BK lost -5.44% on the following trading day.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Bank of. Out of 153 times, BK closed higher 54.25% 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 56.21% with an average market move of 0.33%.