PBCT dominated by bears dragging the market lower throughout the day
People's United Financial Inc. (PBCT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PBCT finished the month -6.74% lower at 10.79 after losing $0.45 (-4.0%) today on high volume, notably underperforming the S&P 500 (0.77%). Today's close at 10.79 marks the lowest recorded closing price since July 9th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 10.85, People's United confirmed its breakout through the previous session low after trading up to $0.10 below it intraday.
Daily Candlestick Chart (PBCT as at Jul 31, 2020):
Friday's trading range has been $0.31 (2.82%), that's below the last trading month's daily average range of $0.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PBCT.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on July 20th, PBCT actually gained 5.59% on the following trading day.
Unable to break through the key technical resistance level at 11.00 (R1), the market closed below it after spiking up to 11.06 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Trading close to May's low at 10.00 we might see further downside momentum if potential sell stops at the level get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for People's United. Out of 76 times, PBCT closed higher 57.89% 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 57.89% with an average market move of 1.08%.