STT closes lower for the 2nd day in a row
State Street Corporation (STT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, STT finished the week 1.67% higher at 55.32 after losing $2.77 (-4.77%) today on high volume, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (STT as at May 22, 2020):
Friday's trading range has been $2.37 (4.24%), that's slightly above the last trading month's daily average range of $2.21. 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 Bearish Spinning Top. The last time a Bearish Spinning Top showed up on April 28th, STT actually gained 2.73% on the following trading day.
Prices are trading close to the key technical support level at 54.09 (S1). The market closed back below the 50-day moving average at 55.44 for the first time since May 15th.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for State Street. Out of 205 times, STT closed higher 56.10% 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 0.63%.