HBAN runs into sellers around 10.13 for the third day in a row
Huntington Bancshares Incorporated (HBAN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HBAN ended Wednesday at 9.89 losing $0.11 (-1.1%), underperforming the S&P 500 (-0.46%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (HBAN as at Sep 16, 2020):
Wednesday's trading range has been $0.33 (3.35%), that's slightly above the last trading month's daily average range of $0.31. 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 slightly lower than usual for HBAN.
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. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star. The last time a Bullish Spinning Top showed up on September 11th, HBAN gained 4.55% on the following trading day.
Unable to break through the key technical resistance level at 10.04 (R1), Huntington Bancshares closed below it after spiking up to 10.13 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. The market ran into sellers again today around 10.13 for the third trading day in a row after having found sellers at 10.11 in the previous session and at 10.16 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 10.16 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Huntington Bancshares. Out of 54 times, HBAN closed higher 53.70% 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 68.52% with an average market move of 2.02%.