PBCT dominated by bulls lifting the market higher throughout the day
People's United Financial Inc. (PBCT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
PBCT ended Thursday at 12.10 gaining $1.08 (9.8%), strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 11.61, the market confirmed its breakout through the prior session high after trading up to $0.63 above it intraday.
Daily Candlestick Chart (PBCT as at Mar 26, 2020):
Thursday's trading range has been $1.27 (11.42%), that's slightly above the last trading month's daily average range of $1.15. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PBCT.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 18th, PBCT actually lost -5.20% on the following trading day.
Buyers managed to take out the key technical resistance level at 11.92 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 12.89 (R1).
While People's United is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for People's United. Out of 380 times, PBCT closed lower 52.11% 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 50.00% with an average market move of -0.16%.