BK rallies 4.6% on high volume
Bank of New York Mellon Corporation (BK) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BK finished the month 3.98% higher at 38.65 after surging $1.70 (4.6%) today on high volume, notably outperforming the S&P 500 (1.54%). This is the biggest single-day gain in over three weeks. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 37.29, the share confirmed its breakout through the prior session high after trading up to $1.59 above it intraday.
Daily Candlestick Chart (BK as at Jun 30, 2020):
Tuesday's trading range has been $2.00 (5.41%), that's far above the last trading month's daily average range of $1.29. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BK.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The stock managed to close back above the 100-day moving average at 37.10. When this moving average was crossed above the last time on June 25th, BK actually lost -4.80% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 39.52 where further buy stops might get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" 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 61.67% with an average market move of 0.81%.