CFG finds support at 20-day moving average
Citizens Financial Group Inc. (CFG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CFG ended the week 6.83% higher at 21.28 after edging lower $0.07 (-0.33%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading $0.37 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CFG as at May 22, 2020):
Friday's trading range has been $0.90 (4.19%), that's below the last trading month's daily average range of $1.13. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CFG.
Despite a strong opening Citizens Financial closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading as low as 20.97 during the day, the share found support at the 20-day moving average at 21.27. The market ran into sellers again today around 21.87 for the third trading day in a row after having found sellers at 21.92 in the prior session and at 21.80 two days ago. The last time this happened on May 15th, CFG actually gained 8.33% on the following trading day.
CFG shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 21.92 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 20.59 where further sell stops might get triggered. As prices are trading close to May's high at 22.42, upside momentum could speed up should the stock mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Citizens Financial. Out of 93 times, CFG closed higher 55.91% 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 56.99% with an average market move of 0.47%.