SAN breaks back above 20-day moving average
Banco Santander S.A. Sponsored ADR (SAN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
SAN ended the week 5.58% higher at 2.08 after gaining $0.06 (2.97%) today on high volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.05 lower after the open, Banco Santander managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SAN as at May 22, 2020):
Friday's trading range has been $0.06 (2.9%), that's slightly below the last trading month's daily average range of $0.06. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SAN.
The share managed to close back above the 20-day moving average at 2.08. When this moving average was crossed above the last time on Monday, SAN actually lost -8.02% on the following trading day. Prices are trading close to the key technical resistance level at 2.11 (R1). After having been unable to move above 2.07 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 2.08.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 2.13 where further buy stops might get activated. As prices are trading close to May's high at 2.17, upside momentum could speed up should the market mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Banco Santander. Out of 386 times, SAN closed lower 53.11% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.66% with an average market move of -0.87%.