PBCT finds buyers around 10.27 for the third day in a row
People's United Financial Inc. (PBCT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PBCT ended Wednesday at 10.50 gaining $0.18 (1.74%), strongly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PBCT as at Sep 16, 2020):
Wednesday's trading range has been $0.39 (3.77%), that's above the last trading month's daily average range of $0.33. 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 lower than usual for PBCT. Prices continued to consolidate within a tight trading range between 10.25 and 10.68 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar.
Prices are trading close to the key technical resistance level at 10.76 (R1). The share found buyers again today around 10.27 for the third trading day in a row after having found demand at 10.29 in the previous session and at 10.25 two days ago. The last time this happened on July 2nd, PBCT gained 1.61% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 10.68 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for People's United. Out of 116 times, PBCT closed higher 58.62% 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 58.62% with an average market move of 0.32%.