SIACharts Logo

Commentary >

The Bank of New York Mellon Corp (BK) - January 17, 2024


BNY Mellon (BK) a provider of asset custodial and other services to the investment industry, has been working its way back up the rankings in the SIA S&P 100 Index Report since August, after tumbling down the rankings last spring when sentiment turned against the financial services sector. As treasury yields came down, stocks bounced back, and Financials came back into favor, BK climbed up out of the red zone in November and steadily moved up through the yellow zone through December. Yesterday, BK completed its rebound, returning to the Green Favored Zone for the first time since last March, after climbing 6 spots yesterday and 15 positions in the last month to 21st place. Changes in the trend of SIACharts’ relative strength can help to identify periods of underperformance and of outperformance. Between when BK left the green zone last march and when it left the red zone in November, the share price rose 7.0% while the S&P 100 Index rallied 21.6%. Since BK left the red zone in November to yesterday, it rallied 17.5%, outpacing the 4.3% gain of the S&P 100 Index over the same time period.

Candlestick Chart Reveals Multiple Breakouts:

After a false start faltered near $50.00 last March, BNY Mellon (BK) shares slumped back into the $39.00 to $46.00 area, where they spent much of last year base building. In October, they came under renewed and consistent accumulation, with the shares posting gains in 11 of the last 13 weeks. With a breakout over $46.00 in November, BK completed a bullish Ascending Triangle base and the start of a new uptrend was confirmed by the December breakout over $50.00.

Initial upside resistance may appear near $60.00 where the early 2022 peak, a round number and measured move cluster, followed on trend by $63.0 and $67.00 based on measured moves. Initial support appears in the $50.00 to $5100 area where the 10-week average, a round number and a retest of previous resistance cluster.

Point and Figure Chart Continues to Recover:

BNY Mellon (BK) shares initially staged a strong recovery rally up out of the 2022 market bottom, but they faltered in March of 2023 and after slumping back, they spent most of the year consolidating in the $40.0 to $45.00 range. Accumulation resumed in November with the shares staging a bullish Double Top breakout, and since then, the shares have not looked back, rallying up through $50.00 and $55.00 without even a 3-box correction along the way.

Next potential resistance appears at the 2021 peak just below the $60.00 round number followed by $67.50 and $70.25 based on horizontal counts. Initial support appears in the $49.20 to $51.15 zone where a 3-box reversal, previous resistance, and the $50.00 round number cluster.

With a perfect SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, BK is exhibiting short-term strength across the asset classes.

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.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.