ALLY pushes through Tuesday's high
Ally Financial Inc. (ALLY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ALLY ended Wednesday at 25.70 gaining $0.90 (3.63%) on high volume, significantly outperforming the S&P 500 (-0.46%). Today's close at 25.70 marks the highest recorded closing price since March 4th. Closing above Tuesday's high at 25.51, the market confirmed its breakout through the prior session high after trading up to $0.55 above it intraday.
Daily Candlestick Chart (ALLY as at Sep 16, 2020):
Wednesday's trading range has been $1.52 (6.08%), that's far above the last trading month's daily average range of $0.86. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ALLY.
Crossing above the upper Bollinger Band for the first time since September 4th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 23.46 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on September 4th, ALLY actually lost -4.08% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Ally Financial. Out of 88 times, ALLY closed higher 54.55% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after eight trading days, showing a win rate of 57.95% with an average market move of 0.13%.