BNY Mellon’s Breakout Run: Nearly 100% Gains and Still Climbing

by SIACharts.com

SIA Charts’ relative strength rankings assist investors in identifying stocks that are outperforming their peers or index benchmarks. Outperformance typically indicates positive investor expectations for a company or sector. The rankings not only help investors to identify which stocks in a universe are outperforming or underperforming against their peers, but also when relative performance trends are changing. US Financial names have been showing some overall strength of late and, as such, let’s highlight The Bank of New York Mellon Corp which has shown some consistent outperformance of late.

We last spoke about The Bank of New York Mellon (BK) over a year and a half ago, on January 17, 2024, after it entered the favored zone of the SIA S&P 500 Index Report a few days earlier on January 12, 2024, at a price of $54.85. Since that time, the shares have remained in the favored zone, albeit there was a brief period in Spring of 2024 when it dipped into the yellow neutral zone but held its positive SMAX only to recover back the favored zone. The shares are showing strong relative strength moves up the SIA S&P 500 report, gaining 22 spots in the last month and 5 spots in the last quarter, exemplify the consistent money flow increases in the shares over the past little while. Currently the shares reside in the 24th spot in the report and yesterday’s closing price of $103.61 represents almost a 100% gain in price since entering into a favored status by way of SIA’s Relative Strength Analysis Signals. In looking at the attached candlestick chart of BK, we see the shares were in an uptrend until reaching a peak at the $58.00 level in Jan 2022. Then the shares transitioned into distribution mode with a fall to the mid $35 to $40 area for most of 2022 - and even into a better portion of 2023. Beginning in October of 2023, the bulls began to take charge and the accumulation phase began, with a confirmation of this phase taking place in July 2024 when the shares decisively broke above the $58.00 level (the previous high from Jan 2022). Over the last year the shares have formed a rather parabolic pattern; other than the brief pullback last April, when the overall market had the ā€œjittersā€. Most Importantly, even in April, the shares still managed to hold onto its green favored status in the report. Confirmation of the continuation of this uptrend was confirmed when the shares broke above $90 in May showing the resilience of the name since its entry in the favored zone a year and a half ago.

Point and Figure Charts can provide a clear perspective on potential support and resistance levels, particularly when a security is trading in new high territory. In the case of The Bank of New York Mellon Corp. (BK), the shares moved above $90.00 earlier this year and are currently in a strong rising column of Xs, lasting 17 boxes without a 3-box reversal.

We have also incorporated the SIA Report Overlay Tool with the S&P 500 Index report, which further highlights the move in the shares while in the favored zone, exemplifying the power of this signal. Based on a measured move, next resistance currently stands at $107.93 and, above that, $126.46. On the downside, if a pause materializes after such a large move, support is at its 3-box reversal of $93.96 and, below that, $86.61. The shares currently exhibit a bullish Double Top pattern and with an SMAX score of a perfect 10 out of 10, the shares are exhibiting very strong near term strength against the asset classes. Also of note, Bank of New York Mellon is classified in the SIA Financial Services sector which has a Favored rating within the SIA Stock Sectors Report indicating a positive sector backdrop for the name.

BNY Mellon is a global investment company involved in managing and servicing financial assets throughout the investment lifecycle. The bank provides financial services for institutions, corporations, and individual investors and delivers investment management and investment services in 35 countries and more than 100 markets. BNY Mellon is the largest global custody bank in the world, with about $41.1 trillion in under custody and administration (as of Dec. 31, 2020), and can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute, or restructure investments. BNY Mellon's asset-management division manages about $2.2 trillion in assets.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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