CFG runs into sellers around 28.17 for the third day in a row
Citizens Financial Group Inc. (CFG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CFG finished Wednesday at 27.62 surging $0.93 (3.48%), significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over three weeks. The last time we've seen such an unusually strong single-day gain on Monday, CFG actually lost -4.64% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CFG as at Sep 16, 2020):
Wednesday's trading range has been $1.59 (5.94%), that's far above the last trading month's daily average range of $0.92. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CFG. Prices continued to consolidate within a tight trading range between 26.35 and 28.17 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 27.42 (now S1), which is likely to act as support going forward. Citizens Financial ran into sellers again today around 28.17 for the third trading day in a row after having found sellers at 28.00 in the prior session and at 28.10 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven 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. Although it is usually interpreted as bearish, it has actually shown to be bullish for Citizens Financial. Out of 96 times, CFG closed higher 56.25% 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 59.38% with an average market move of 1.26%.