HBAN runs into sellers again around 14.16
Huntington Bancshares Incorporated (HBAN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
HBAN finished the week 0.86% higher at 14.08 after losing $0.07 (-0.49%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. 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 (HBAN as at Feb 14, 2020):
Friday's trading range has been $0.16 (1.13%), that's below the last trading month's daily average range of $0.28. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HBAN. Prices continued to consolidate within a tight trading range between 13.85 and 14.22 where it has been caught now for the whole last trading week.
After moving higher in the previous session, the stock closed lower but above the prior day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on November 18, 2019, HBAN actually gained 0.41% on the following trading day.
Prices broke below the key technical support level at 14.14 (now R1), which is likely to act as resistance going forward. After having been unable to move above 14.15 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 14.16.
Though Huntington Bancshares is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 14.22 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 13.94 where further sell stops could get triggered. As prices are trading close to February's low at 13.69, downside momentum might speed up should the market mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Huntington Bancshares. Out of 269 times, HBAN closed higher 53.53% 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 57.99% with an average market move of 1.20%.