HBAN breaks below Thursday's low
Huntington Bancshares Incorporated (HBAN) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, HBAN ended the week -6.38% lower at 14.37 after tanking $0.33 (-2.24%) today, strongly underperforming the S&P 500 (1.42%). Today's close at 14.37 marks the lowest recorded closing price since November 28, 2017. Closing below Thursday's low at 14.70, the market confirmed its breakout through the previous session low after trading up to $0.64 below it intraday.
Daily Candlestick Chart (HBAN as at Oct 12, 2018):
Friday's trading range has been $0.89 (5.96%), that's far above the last trading month's daily average range of $0.33. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for HBAN.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 14.63 (now R1), which is likely to act as resistance going forward.
Crossing below the lower Bollinger Band for the first time since September 26th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 15.33 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on September 26th, HBAN lost -1.63% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Huntington Bancshares. Out of 59 times, HBAN closed higher 61.02% 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 66.10% with an average market move of 1.44%.