MTB runs into sellers again around 106.15
M&T Bank Corporation (MTB) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
MTB finished the month 1.9% higher at 105.95 after edging higher $0.17 (0.16%) today on high volume, underperforming the S&P 500 (0.77%). Trading up to $1.62 lower after the open, M&T Bank managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MTB as at Jul 31, 2020):
Friday's trading range has been $2.99 (2.85%), that's below the last trading month's daily average range of $3.72. 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 MTB. Prices continued to consolidate within a tight trading range between 101.22 and 107.45 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.
Prices are trading close to the key technical resistance level at 107.22 (R1). After having been unable to move above 106.28 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 106.15. The last time this happened on July 24th, MTB lost -2.12% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 107.45 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for M&T Bank. Out of 597 times, MTB closed higher 50.25% 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 56.45% with an average market move of 0.34%.