ZION still stuck within tight trading range
Zions Bancorporation N.A. (ZION) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ZION ended the month -4.5% lower at 32.47 after losing $0.31 (-0.95%) today, significantly underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ZION as at Jul 31, 2020):
Friday's trading range has been $0.75 (2.3%), that's far below the last trading month's daily average range of $1.23. 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 ZION. Prices continued to consolidate within a tight trading range between 31.67 and 33.50 where it has been caught now for the whole last trading week.
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. Additionally, one bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on June 12th, ZION gained 3.50% on the following trading day.
The share closed back below the 20-day moving average at 32.66. After having been unable to move above 32.81 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 32.69.
Though Zions Bancorporation is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 33.42 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 31.67 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Zions Bancorporation. Out of 162 times, ZION closed higher 54.32% 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 56.79% with an average market move of 1.10%.