CFG closes above its opening price after recovering from early selling pressure
Citizens Financial Group Inc. (CFG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CFG finished the month -1.7% lower at 24.81 after edging higher $0.03 (0.12%) today on high volume, underperforming the S&P 500 (0.77%). Trading up to $0.47 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CFG as at Jul 31, 2020):
Friday's trading range has been $0.77 (3.14%), that's below the last trading month's daily average range of $1.01. 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. Prices continued to consolidate within a tight trading range between 23.92 and 25.49 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Citizens Financial was bought again around 24.07 after having seen lows at 24.03, 23.92 and 24.08 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on December 24, 2019, CFG gained 0.59% on the following trading day.
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 close-by swing high at 25.37 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 23.92 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior three Lows" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Citizens Financial. Out of 11 times, CFG closed lower 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 short side has been after eight trading days, showing a win rate of 63.64% with an average market move of -0.68%.