HBAN closes lower for the 2nd day in a row
Huntington Bancshares Incorporated (HBAN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HBAN finished the month 2.54% higher at 9.27 after edging lower $0.04 (-0.43%) today, significantly underperforming the S&P 500 (0.77%). Trading up to $0.09 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (HBAN as at Jul 31, 2020):
Friday's trading range has been $0.20 (2.18%), that's far below the last trading month's daily average range of $0.35. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HBAN.
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.
Prices are trading close to the key technical resistance level at 9.48 (R1). After having been unable to move above 9.33 in the prior session, Huntington Bancshares ran into sellers again around the same price level today, failing to move higher than 9.29. The last time this happened on July 24th, HBAN lost -3.44% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 9.48 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Huntington Bancshares. Out of 283 times, HBAN closed higher 52.30% 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 57.60% with an average market move of 0.92%.