Tuesday, June 5, 2012

The Bank of New York Mellon Corp. (NYSE: BK)

The Bank of New York Mellon Corporation is a global financial services company. The company divides its businesses into two principal segments: Investment Management and Investment Services. It has another segment, which includes credit-related activities, the lease financing portfolio, corporate treasury activities (including its investment securities portfolio), its equity investments in Wing Hang Bank Limited and ConvergEx Group, business exits and corporate overhead. Its two banks are The Bank of New York Mellon, which houses its institutional businesses, including asset servicing, issuer services, treasury services, broker-dealer and advisor services.

To analyze New York Mellon's stock for potential trading opportunities, please take a look at the 1-year chart of BK (The Bank of New York Mellon Corporation) below with my added notations:

I noticed BK because of its key level at $20. Not only can you see the $20 support (green) from January until present and from back in November, but the $20 resistance (red) was apparent back in the October and December periods of time. So, the $20 price is the current key level to this stock. If you are bearish, you might consider shorting BK on a break of $20, but if you are bullish, you would want to buy the stock at $20.

The Tale of the Tape: BK presents a couple of very simple trading opportunities based on its key level of $20. A short position could be entered IF the stock breaks below $20 with a stop set above that level, or a long play could be made on a pullback to $20 if that should happen.

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