BK breaks back below 20-day moving average
Bank of New York Mellon Corporation (BK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
BK ended the week 7.61% higher at 34.50 after losing $0.48 (-1.37%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 34.60, the stock confirmed its breakout through the prior session low after trading up to $0.30 below it intraday.
Daily Candlestick Chart (BK as at May 22, 2020):
Friday's trading range has been $0.76 (2.17%), that's below the last trading month's daily average range of $0.98. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BK.
Despite a strong opening the share closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on April 7th, BK actually gained 2.44% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
The market closed back below the 20-day moving average at 34.86.
Bank of shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 35.23 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Bank of. Out of 306 times, BK closed higher 55.88% 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 55.23% with an average market move of 0.34%.