TheStreet.com quantitative service downgraded Bank of New York Mellon (BK) -- strike one. BK's chart is fairly negative looking -- strike two. Can BK make it to opening day (for the Yankees on April 4) or will new lows for the move down make it strike out?
This first chart of BK, above, shows the breakdown in January with BK breaking its August/September price lows. About the same time, we get a death cross with the 50-day moving average declining below the 200-day average. Sellers have been more aggressive for months with the On-Balance-Volume (OBV) line peak in August. There is a bullish divergence between the lower price lows and higher lows from the momentum indicator, but it isn't giving much lift to the stock price.
This weekly chart of BK, above, is not coming to the ai of the daily chart. BK is trading below the declining 40-week moving average. The OBV line is declining and the Moving Average Convergence Divergence (MACD) oscillator is below the zero line, which is a negative. With resistance on BK at $38, the path of least resistance may be a test of next support down at $30. A retest of the February lows around $32 is expected in the weeks ahead for BK and subsequent weakness down to $30 would not be out of hand for a weak stock in a weak group.