ITUB snaps to lowest close since November 29, 2019
Itau Unibanco Banco Holding SA American Depositary Shares (ITUB) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ITUB finished Wednesday at 8.28 losing $0.18 (-2.13%) on high volume, strongly underperforming the S&P 500 (0.19%). Today's close at 8.28 marks the lowest recorded closing price since November 29, 2019.
Daily Candlestick Chart (ITUB as at Jan 15, 2020):
Wednesday's trading range has been $0.12 (1.44%), that's below the last trading month's daily average range of $0.15. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ITUB.
Prices are trading close to the key technical support level at 8.19 (S1). Prices are trading close to the key technical resistance level at 8.40 (R1).
Crossing below the lower Bollinger Band for the first time since January 10th, 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 8.88 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 January 10th, ITUB actually gained 0.24% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. Its common bearish interpretation has been confirmed for Itau Unibanco. Out of 195 times, ITUB closed lower 50.26% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 57.95% with an average market move of -0.67%.