BMO closes lower for the 2nd day in a row
Bank Of Montreal (BMO) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BMO ended the week 3.59% higher at 45.90 after losing $0.82 (-1.76%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday.
Daily Candlestick Chart (BMO as at May 22, 2020):
Friday's trading range has been $1.22 (2.62%), that's below the last trading month's daily average range of $1.54. 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 BMO.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 47.00 (R1).
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Bank Of. Out of 286 times, BMO closed lower 51.05% 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 10 trading days, showing a win rate of 49.30% with an average market move of -0.23%.