SAN breaks back below 200-day moving average
Banco Santander S.A. Sponsored ADR (SAN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SAN finished the week 0.24% higher at 4.18 after losing $0.05 (-1.18%) today on low volume, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 4.20, the market confirmed its breakout through the prior session low after trading up to $0.03 below it intraday.
Daily Candlestick Chart (SAN as at Feb 14, 2020):
Friday's trading range has been $0.06 (1.42%), that's above the last trading month's daily average range of $0.05. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SAN.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on January 24th, SAN lost -1.80% on the following trading day.
Banco Santander closed back below the 200-day moving average at 4.18. After having been unable to move above 4.24 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 4.23.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 4.12 where further sell stops might get activated. With prices trading close to this year's high at 4.32, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Banco Santander. Out of 31 times, SAN closed higher 54.84% 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 58.06% with an average market move of 1.02%.