BKU unable to break through key resistance level
BankUnited Inc. (BKU) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
BKU ended the week -0.03% lower at 33.11 after losing $0.23 (-0.69%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BKU as at Feb 14, 2020):
Friday's trading range has been $0.50 (1.5%), that's slightly below the last trading month's daily average range of $0.62. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BKU.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on January 23rd, BKU lost -2.97% on the following trading day.
Unable to break through the key technical resistance level at 33.35 (R1), BankUnited closed below it after spiking up to 33.40 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move above 33.45 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 33.40.
Although 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 three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for BankUnited. Out of 205 times, BKU closed higher 53.66% 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 52.68% with an average market move of 0.46%.