Stock of the Day: Bank of New York Mellon

In today’s stock of the day, let’s focus on Bank of New York Mellon (BK), where we can see a very classical technical setup forming — a symmetric triangle pattern, clearly marked with blue lines on the chart. This formation has been developing since the end of September, as the stock’s trading range continues to narrow, creating a period of consolidation and lower volatility. Symmetric triangles like this one usually indicate that a significant breakout is coming soon, but the direction is still uncertain.

Over the past few weeks, we’ve already seen two failed breakout attempts. In the first half of October, buyers tried to push the price above the upper boundary of the triangle — but the breakout attempt lacked momentum and was quickly reversed. Shortly after, sellers took their turn, attempting to push the price below the lower line — but that move also failed to hold, sending the price back inside the formation. These false breakouts show that the market is still undecided, and that both sides — bulls and bears — are waiting for a catalyst to take control.

From a trading perspective, the strategy here is quite straightforward. Traders should wait for a confirmed breakout before committing to a direction. A close above the upper blue line would be a strong buy signal, opening the door for a continuation of the medium-term uptrend. Conversely, a break and daily close below the lower blue line would indicate a new bearish wave, and a signal to go short. Until one of these two scenarios unfolds, Bank of New York Mellon remains in a sideways mode, and patience is key.