CMA plummets, losing $1.97 (-2.86%) within a single day
Comerica Incorporated (CMA) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
CMA finished Wednesday at 66.98 tanking $1.97 (-2.86%), strongly underperforming the S&P 500 (0.19%). This is the biggest single-day loss in over five months. Today's close at 66.98 marks the lowest recorded closing price since October 31, 2019. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (CMA as at Jan 15, 2020):
Wednesday's trading range has been $1.40 (2.06%), that's far above the last trading month's daily average range of $0.97. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CMA.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 66.75 earlier during the day, Comerica Incorporated bounced off the key technical support level at 66.83 (S1). The failure to close below the support might increase that levels importance as support going forward. The share closed below the 100-day moving average at 67.40 for the first time since October 31, 2019. When this moving average was crossed below the last time on October 31, 2019, CMA actually gained 3.36% on the following trading day.
Crossing below the lower Bollinger Band for the first time since January 10th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 70.59 or signal the beginning of a strong momentum breakout leading to even lower prices.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Comerica Incorporated. Out of 94 times, CMA closed higher 56.38% 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 68.09% with an average market move of 2.22%.