CIT closes within previous day's range after lackluster session
CIT Group Inc (CIT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CIT finished the week 0.47% higher at 47.30 after losing $0.15 (-0.32%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.23 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CIT as at Feb 14, 2020):
Friday's trading range has been $0.52 (1.1%), that's far below the last trading month's daily average range of $1.09. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CIT.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 47.52 (R1), the stock closed below it after spiking up to 47.58 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 47.16 in the previous session, the market found buyers again around the same price level today at 47.06. The last time this happened on Wednesday, CIT actually lost -0.42% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 46.49 where further sell stops might get triggered. With prices trading close to this year's high at 48.96, upside momentum could accelerate should CIT Group be able to break out to new highs for the year. As prices are trading close to February's low at 46.03, downside momentum might speed up should CIT mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for CIT Group. Out of 409 times, CIT closed higher 51.34% 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 56.48% with an average market move of 0.51%.