MTB still stuck within tight trading range
M&T Bank Corporation (MTB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
MTB ended the week -0.1% lower at 169.78 after losing $0.81 (-0.47%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MTB as at Feb 14, 2020):
Friday's trading range has been $1.46 (0.86%), that's below the last trading month's daily average range of $3.03. 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 MTB. Prices continued to consolidate within a tight trading range between 167.38 and 171.05 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, the stock closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 168.06 (S1). Prices are trading close to the key technical resistance level at 171.05 (R1). After having been unable to move above 170.67 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 170.49. The last time this happened on January 29th, MTB actually gained 0.94% on the following trading day.
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 close-by swing high at 171.05 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 168.68 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for M&T Bank. Out of 56 times, MTB closed higher 64.29% 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 two trading days, showing a win rate of 50.00% with an average market move of -0.01%.