STI unable to break through key resistance level
SunTrust Banks Inc. (STI) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
STI ended Thursday at 59.28 gaining $0.18 (0.3%), slightly outperforming the S&P 500 (0.25%). Trading up to $0.32 lower after the open, SunTrust Banks managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (STI as at Aug 15, 2019):
Thursday's trading range has been $0.94 (1.59%), that's below the last trading month's daily average range of $1.28. 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 STI.
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, two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji.
Unable to break through the key technical resistance level at 59.34 (R1), the share closed below it after spiking up to 59.86 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on Tuesday, STI lost -2.78% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might accelerate should prices move below the close-by swing low at 58.61 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Its common bullish interpretation has been confirmed for SunTrust Banks. Out of 50 times, STI closed higher 52.00% 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 60.00% with an average market move of 2.11%.