STT finds buyers again around 60.73
State Street Corporation (STT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, STT finished the month 4.25% higher at 63.55 after gaining $1.99 (3.23%) today, significantly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 62.88, State Street confirmed its breakout through the prior session high after trading up to $1.19 above it intraday.
Daily Candlestick Chart (STT as at Jun 30, 2020):
Tuesday's trading range has been $3.34 (5.5%), that's above the last trading month's daily average range of $2.87. 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 lower than usual for STT. Prices continued to consolidate within a tight trading range between 59.53 and 64.55 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on June 25th, STT actually lost -5.66% on the following trading day. In spite of a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 65.40 (R1). After having been unable to move lower than 61.01 in the prior session, the stock found buyers again around the same price level today at 60.73.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 64.55 where further buy stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for State Street. Out of 46 times, STT closed higher 56.52% 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 60.87% with an average market move of 2.05%.