MTB closes above its opening price after recovering from early selling pressure
M&T Bank Corporation (MTB) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MTB ended the week 10.0% higher at 98.03 after edging higher $1.26 (1.3%) today, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $2.58 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 8th, MTB actually lost -5.27% on the following trading day. 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 (MTB as at May 22, 2020):
Friday's trading range has been $3.34 (3.43%), that's below the last trading month's daily average range of $4.55. Weekly volatility is also lower, being 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 91.34 and 98.61 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Hanging Man.
Prices are trading close to the key technical resistance level at 100.33 (R1). After having been unable to move lower than 95.44 in the previous session, the share found buyers again around the same price level today at 94.90.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 98.61 where further buy stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for M&T Bank. Out of 534 times, MTB closed higher 52.25% 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 56.37% with an average market move of -0.01%.