STI closes within prior day's range
SunTrust Banks Inc. (STI) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, STI finished the week -9.17% lower at 56.94 after losing $1.50 (-2.57%) today, slightly underperforming the S&P 500 (-2.33%) following today's NFP report. Today's close at 56.94 marks the lowest recorded closing price since November 10, 2017. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (STI as at Dec 07, 2018):
Friday's trading range has been $2.15 (3.69%), that's above the last trading month's daily average range of $1.52. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for STI.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 56.58 (S1). Unable to break through the key technical resistance level at 58.69 (R1), the stock closed below it after spiking up to 58.88 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 56.58 in the previous session, the share found buyers again around the same price level today at 56.73. The last time this happened on Monday, STI actually lost -5.84% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 62.05.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 56.58 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) below 30" stand out. Its common bullish interpretation has been confirmed for SunTrust Banks. Out of 26 times, STI closed higher 61.54% 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 nine trading days, showing a win rate of 65.38% with an average market move of 1.26%.