MTB closes below its opening price unable to hold early session gains
M&T Bank Corporation (MTB) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MTB finished Wednesday at 103.26 losing $0.50 (-0.48%) on high volume, slightly underperforming the S&P 500 (-0.46%). Trading $2.79 higher after the open, M&T Bank was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MTB as at Sep 16, 2020):
Wednesday's trading range has been $3.93 (3.79%), that's above the last trading month's daily average range of $3.01. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MTB.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on September 4th, MTB lost -3.44% on the following trading day.
Prices are trading close to the key technical support level at 100.85 (S1). The stock closed back below the 20-day moving average at 103.62.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 101.70 where further sell stops could get activated. As prices are trading close to September's high at 108.50, upside momentum might speed up should the share mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for M&T Bank. Out of 163 times, MTB closed higher 57.67% 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 60.74% with an average market move of 0.38%.