BK closes within previous day's range
Bank of New York Mellon Corporation (BK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
BK ended Wednesday at 35.57 gaining $0.70 (2.01%), notably outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BK as at Sep 16, 2020):
Wednesday's trading range has been $1.32 (3.79%), that's far above the last trading month's daily average range of $0.89. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BK.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 35.72 (R1), Bank of closed below it after spiking up to 36.16 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 36.48. The last time this happened on May 14th, BK actually lost -1.17% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Bank of. Out of 79 times, BK closed lower 54.43% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after eight trading days, showing a win rate of 45.57% with an average market move of -0.45%.