STT runs into sellers again around 64.68
State Street Corporation (STT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
STT ended Wednesday at 63.32 edging higher $0.12 (0.19%) on high volume, outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (STT as at Sep 16, 2020):
Wednesday's trading range has been $1.63 (2.58%), that's slightly below the last trading month's daily average range of $1.87. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for STT.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, State Street managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, four candlestick patterns are matching today's price action, the Bullish Harami Cross Pattern and the Southern Doji which are both known as bullish patterns, one bearish pattern, the Gravestone Doji and one neutral pattern, the Doji. The last time a Southern Doji showed up on March 4th, STT actually lost -6.87% on the following trading day.
Prices are trading close to the key technical support level at 62.52 (S1). After having been unable to move above 64.77 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 64.68.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 67.25.
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the nearby swing low at 62.52 where further sell stops could get triggered. Trading close to July's low at 60.02 we might see further downside momentum if potential sell stops at the level get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Cross Pattern" stand out. Its common bullish interpretation has been confirmed for State Street. Out of 3 times, STT closed higher 66.67% of the time on the next trading day after the market condition occurred.