ZION pushes through key technical resistance level
Zions Bancorporation N.A. (ZION) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ZION finished Wednesday at 31.81 gaining $0.65 (2.09%), significantly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ZION as at Sep 16, 2020):
Wednesday's trading range has been $1.56 (5.01%), that's far above the last trading month's daily average range of $1.13. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ZION. Prices continued to consolidate within a tight trading range between 30.80 and 32.67 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.
Buyers managed to take out the key technical resistance level at 31.33 (now S1), which is likely to act as support going forward. After spiking up to 32.36 during the day, the market found resistance at the 20-day moving average at 32.32. The last time this happened on Monday, ZION lost -3.44% on the following trading day. After having been unable to move above 32.24 in the previous session, Zions Bancorporation ran into sellers again around the same price level today, missing to move higher than 32.36.
While the share 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 speed up should prices move above the nearby swing high at 32.67 where further buy stops might get activated. Trading close to July's low at 30.12 we could see further downside momentum if potential sell stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for Zions Bancorporation. Out of 60 times, ZION closed lower 56.67% 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 58.33% with an average market move of -0.67%.