UBS rises to highest close since June 9th
UBS Group AG Registered (UBS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, UBS ended the month 7.85% higher at 11.54 after gaining $0.16 (1.41%) today, slightly underperforming the S&P 500 (1.54%). Today's close at 11.54 marks the highest recorded closing price since June 9th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 11.50, the stock confirmed its breakout through the previous session high after trading up to $0.04 above it intraday.
Daily Candlestick Chart (UBS as at Jun 30, 2020):
Tuesday's trading range has been $0.20 (1.76%), that's below the last trading month's daily average range of $0.28. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for UBS.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on March 30th, UBS lost -2.66% on the following trading day.
Prices are trading close to the key technical support level at 11.32 (S1). The share ran into sellers again today around 11.54 for the third trading day in a row after having found sellers at 11.50 in the prior session and at 11.50 two days ago.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to June's high at 12.00, upside momentum could accelerate should UBS Group mark new highs for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for UBS Group. Out of 154 times, UBS closed lower 53.25% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 55.19% with an average market move of -0.83%.