BMO dominated by bulls lifting the market higher throughout the day
Bank Of Montreal (BMO) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BMO ended the month 7.58% higher at 53.05 after gaining $0.83 (1.59%) today, slightly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 52.97, Bank Of confirmed its breakout through the prior session high after trading up to $0.35 above it intraday.
Daily Candlestick Chart (BMO as at Jun 30, 2020):
Tuesday's trading range has been $1.71 (3.3%), that's slightly above the last trading month's daily average range of $1.66. 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 BMO.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Even with a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The stock found buyers again today around 51.61 for the third trading day in a row after having found demand at 51.71 in the prior session and at 51.43 two days ago. The last time this happened on April 3rd, BMO gained 5.53% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 51.43 where further sell stops could get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Bank Of. Out of 90 times, BMO closed higher 54.44% 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 62.22% with an average market move of 0.73%.