Bank of New York Mellon Corp. (BK) - Is the all-time high under attack?
ISIN: US0640581007

The Bank of New York Mellon Corp. focuses primarily on the core business areas of asset management and investment services. In July 2007, the bank merged with Mellon Financial Corporation. The most important banks for the present-day company continue to be the Bank of New York Mellon, with a focus on the supervision of institutional customers, and the BNY Mellon National Association. The Bank of New York Mellon provides services in the fields of asset management, issuer services, treasury services and broker deals. The main focus is on the area of asset management.

In the following analysis, we will examine the stock of the company from a chart-related point of view.

Review (daily chart):

After a long, trendless sideways phase, this phase was exited upwards with plenty of dynamism and volume in the middle of June. At the same time, a new all-time high was marked in the process. Since then, a nice upward trend has formed, meaning that one new high after the other has been reached. Most recently, the stock corrected more strongly; however, the dynamism of this downward movement has already subsided, namely precisely before the last relevant low and the important SMA 200 average. Currently, the stock is providing an opportunity for a long entry with very good profit potential.

Outlook hourly chart

In the hourly chart, we can see the correction that is currently underway, which has yet to develop in our preferred trading direction.

For a long entry, one should wait for the formation of a signal in the form of a P2, and place the stop loss below the last P3 (shown in green).

Alternatively, and with the advantage of a cheaper stop, one can also practice trading from out of the correction or the formation of a reversal candle at a significant point.

The first target is located in the area around $55.00 (see green zone in the daily chart). A continuation of the trend to form new all-time highs may well be on the cards.

If the price considerably undercuts the last significant low at $50.15, one should abandon the long scenario for the time being (see lower red zone in the daily chart).

Before trading, one should take news in the environment and from the company into account.

Similarly, one should also observe the development of the overall market.