CFG runs into sellers again around 39.03
Citizens Financial Group Inc. (CFG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CFG ended the week 0.65% higher at 38.67 after losing $0.28 (-0.72%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CFG as at Feb 14, 2020):
Friday's trading range has been $0.60 (1.54%), that's slightly below the last trading month's daily average range of $0.70. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CFG.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar.
Citizens Financial closed back below the 20-day moving average at 38.78. After having been unable to move above 38.95 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 39.03. The last time this happened on Monday, CFG actually gained 1.33% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 38.13 where further sell stops might get activated. As prices are trading close to February's low at 37.60, downside momentum could speed up should the stock mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Citizens Financial. Out of 71 times, CFG closed higher 59.15% 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 10 trading days, showing a win rate of 54.93% with an average market move of 0.67%.