PBCT dominated by bears dragging the market lower throughout the day
People's United Financial Inc. (PBCT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PBCT ended the week 1.69% higher at 10.86 after losing $0.31 (-2.78%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 11.13, People's United confirmed its breakout through the previous session low after trading up to $0.29 below it intraday.
Daily Candlestick Chart (PBCT as at May 22, 2020):
Friday's trading range has been $0.43 (3.84%), that's below the last trading month's daily average range of $0.53. 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 PBCT.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 11.00 (now R1), which is likely to act as resistance going forward. The last time this happened on May 13th, PBCT actually gained 3.90% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for People's United. Out of 479 times, PBCT closed higher 55.11% of the time on the next trading day after the market condition occurred.