BOH dominated by bears dragging the market lower throughout the day
Bank of Hawaii Corporation (BOH) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
BOH finished the week 1.07% higher at 90.93 after losing $0.64 (-0.7%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BOH as at Feb 14, 2020):
Friday's trading range has been $0.80 (0.87%), that's far below the last trading month's daily average range of $1.29. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BOH. Prices continued to consolidate within a tight trading range between 89.56 and 91.70 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving higher in the prior session, the stock closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices broke below the key technical support level at 91.48 (now R1), which is likely to act as resistance going forward. The last time this happened on January 31st, BOH actually gained 1.35% on the following trading day. After having been unable to move above 91.70 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 91.62.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 91.70 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 89.85 where further sell stops could get triggered. With prices trading close to this year's low at 89.49, downside momentum might accelerate should Bank of break out to new lows for the year. Trading close to December's low at 89.00 we could see further downside momentum if potential sell stops at the level get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Bank of. Out of 707 times, BOH closed higher 55.30% 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 58.98% with an average market move of 0.53%.