This idea is probably premature, and based on my fundamental bias that the market in general, and banks in particular, are based on fake money and debt and will roll over soon. As a reason against this thesis, the fundamental news for this particular bank seems to be good, with hedge funds reported to be bullish on it. So I will trade this, but with a very small...
:: It was a failed setup from 2 days okay; I kept $BK on my watchlist and see a possible good setup + NR7 with lowest vol. over the past 30 sessions + Inside bar + NR7 + Hammer +/- Weak support from .38 Fib - Yesterday's bar had long upper shadow - Appears to be moving side way around the 0.5 Fib. Setup: Long above yesterday's high Stop set conservatively at...
$BK - long What I saw: + Sideway move within channel in the past 10 days + Breakout signals fired in high vol. + MACD turning positive + Weekly chart painted a NR3 & NR7 combo with higher vol. - Upper shadows scattered whenever price reached resistance - Next Fib resistance is at $39.5 - Overall price has been in downward trend My entry plan: Long above $38;...
Sellers have come into market which has made a lower swing high on daily / Doji on weekly @ supply. Anticipate some form of retracement
Dates in the future with the greatest probability for a price high or price low
Buyers making an Outside day @ demand, to fill the gap of the retarcement
The market is over-reacting to $BK earnings and the stock is down over 7%. We believe this is a buy the dip opportunity. There's also the inverse head and shoulders pattern. Bank of New York Mellon (NYSE:BK): Q4 Non-GAAP EPS of $1.01 beats by $0.01; GAAP EPS of $1.52 beats by $0.01. Revenue of $3.99B (-0.3% Y/Y) misses by $180M. As always, trade with caution...
Divergence has occurred on daily chart with strong sellers @ supply level to commence retracement
I have observed that BK buyers has been struggling to prop it up from the beginning of 2019 with BK down for the year amidst broad market strength. With BK staging a modest rally from the lows, it may now be facing some serious overhead resistance as it approaches the key psychological level of 50. BK may head back to 48 then to 45 should buyers fail to hold.
One weak analysis. wait for the long position.
Undervalued by 38% using Div Yield Theory, 25% <5 yr PE -BRK's most undervalued bank holding -Nearing 30 year demand uptrend line - 8 years consecutive dividend increases