SBNY closes below its opening price unable to hold early session gains
Signature Bank (SBNY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SBNY ended the week 1.02% higher at 144.36 after losing $0.04 (-0.03%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.46 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. 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 (SBNY as at Feb 14, 2020):
Friday's trading range has been $1.07 (0.74%), that's below the last trading month's daily average range of $2.83. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SBNY.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
Prices are trading close to the key technical support level at 142.86 (S1). The stock closed below the 20-day moving average at 144.49 for the first time since January 15th. When this moving average was crossed below the last time on January 15th, SBNY actually gained 1.42% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 145.64 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 143.05 where further sell stops might get triggered. With prices trading close to this year's high at 148.64, upside momentum could speed up should Signature Bank be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Signature Bank. Out of 289 times, SBNY closed higher 53.63% 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 57.09% with an average market move of 0.69%.