The relative strength chart for Bank of New York Mellon (BK) within the SIA S&P 500 reminds us of just how fast sentiment toward a sector can change, in this case, financial services. BK spent the last nine months of 2022 stuck in the red zone but started to work its way back up the rankings starting in September. In January it climbed into the yellow zone and by February it had returned to the green zone for the first time in nearly a year.
Since peaking on March 9th, however, BK has quickly tumbled back down the rankings, falling back into the Yellow Neutral Zone, Currently in 45th place after falling 11 spots on Friday, BK has dropped 24 positions in the last month and it is currently 8 spots away from a return to the red zone.
Bank of New York Mellon (BK) has turned decisively downward in the last two weeks. Earlier this month, an upward trend failed to overcome previous resistance near $52.50. Since then, the shares have fallen fast, taking out $50.00 and $45.00, along with both their 50 and 200-day moving averages. Declines on a spike in volumes indicate increasing distribution, just as previous gains on volume had indicated accumulation.
Potential downside support may appear at previous lows near $40.00, $37.50, or $35.50. Initial resistance appears in the $45.00 to $45.50 area.
Trading in Bank of New York Mellon (BK) shows how quickly a rally can emerge and how quickly it can fall apart. BK had been looking good in recently months, rallying out of a Bear Trap bottom, completing a series of bullish patterns, building a high pole and snapping a downtrend line. In the last few days, however, the shares have gone into retreat, triggering a bearish High Pole Warning.
Potential downside support tests appear at previous column lows near $39.10 and $36.10. Initial resistance on a rebound appears near $46.75 based on a 3-box reversal.
With a bearish SMAX score of 5, BK is exhibiting weakness across the asset classes.
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