STT breaks back below 50-day moving average
State Street Corporation (STT) Technical Analysis Report for Feb 13, 2020 | by Techniquant Editorial Team
STT finished Thursday at 78.84 losing $1.59 (-1.98%), strongly underperforming the S&P 500 (-0.16%).
Daily Candlestick Chart (STT as at Feb 13, 2020):
Thursday's trading range has been $1.84 (2.31%), that's slightly above the last trading month's daily average range of $1.79. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for STT.
One bearish candlestick pattern matches today's price action, the Black Candle.
State Street closed back below the 50-day moving average at 79.24 for the first time since February 4th. When this moving average was crossed below the last time on January 27th, STT actually gained 1.39% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for State Street. Out of 84 times, STT closed higher 58.33% 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 54.76% with an average market move of 1.01%.