SBNY closes below its opening price unable to hold early session gains
Signature Bank (SBNY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SBNY ended the week 6.58% higher at 96.06 after losing $1.89 (-1.93%) today on low volume, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading $1.61 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 97.81, the share confirmed its breakout through the prior session low after trading up to $2.61 below it intraday.
Daily Candlestick Chart (SBNY as at May 22, 2020):
Friday's trading range has been $4.73 (4.81%), that's slightly below the last trading month's daily average range of $5.53. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SBNY.
Unable to break through the key technical resistance level at 98.84 (R1), Signature Bank closed below it after spiking up to 99.93 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on May 6th, SBNY lost -1.75% on the following trading day. The market ran into sellers again today around 99.93 for the third trading day in a row after having found sellers at 100.86 in the previous session and at 100.29 two days ago.
SBNY shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 100.86 where further buy stops could get activated.
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. Though it is usually interpreted as bearish, it has actually shown to be bullish for Signature Bank. Out of 295 times, SBNY closed higher 53.90% 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 57.63% with an average market move of 0.63%.