CFG breaks back above 100-day moving average
Citizens Financial Group Inc. (CFG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CFG finished the month 4.73% higher at 25.24 after gaining $1.71 (7.27%) today, strongly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 23.79, the market confirmed its breakout through the prior session high after trading up to $1.62 above it intraday.
Daily Candlestick Chart (CFG as at Jun 30, 2020):
Tuesday's trading range has been $2.10 (8.98%), that's above the last trading month's daily average range of $1.71. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CFG. Prices continued to consolidate within a tight trading range between 22.82 and 25.41 where it has been caught now for the whole last trading week.
Notwithstanding a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Citizens Financial managed to close back above the 100-day moving average at 24.72. When this moving average was crossed above the last time on June 25th, CFG actually lost -8.31% on the following trading day. Prices are trading close to the key technical resistance level at 26.18 (R1).
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 26.47 where further buy stops might get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Citizens Financial. Out of 35 times, CFG closed higher 62.86% 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 nine trading days, showing a win rate of 57.14% with an average market move of 1.18%.