ZION closes lower for the 2nd day in a row
Zions Bancorporation N.A. (ZION) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ZION finished the week 11.73% higher at 30.19 after losing $0.54 (-1.76%) today on low volume, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 30.62, the stock confirmed its breakout through the prior session low after trading up to $0.72 below it intraday.
Daily Candlestick Chart (ZION as at May 22, 2020):
Friday's trading range has been $1.19 (3.85%), that's slightly below the last trading month's daily average range of $1.28. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ZION.
Even with a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Tuesday, ZION actually gained 6.50% on the following trading day.
Prices are trading close to the key technical resistance level at 30.84 (R1).
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 31.68 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Zions Bancorporation. Out of 512 times, ZION closed higher 52.34% 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 nine trading days, showing a win rate of 53.13% with an average market move of 0.38%.