SAN runs into sellers again around 2.71
Banco Santander S.A. Sponsored ADR (SAN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, SAN ended Thursday at 2.65 gaining $0.03 (1.15%), strongly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SAN as at Mar 26, 2020):
Thursday's trading range has been $0.10 (3.79%), that's far below the last trading month's daily average range of $0.17. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SAN.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on Tuesday, SAN gained 5.65% on the following trading day.
After having been unable to move above 2.72 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 2.71.
Though Banco Santander is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 2.72 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Banco Santander. Out of 18 times, SAN closed higher 83.33% 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 66.67% with an average market move of 0.87%.