CMA closes higher for the 3rd day in a row
Comerica Incorporated (CMA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CMA finished Thursday at 33.99 gaining $0.92 (2.78%) on low volume, significantly underperforming the S&P 500 (6.24%). Trading up to $0.98 lower after the open, Comerica Incorporated 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 missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CMA as at Mar 26, 2020):
Thursday's trading range has been $2.34 (6.99%), that's below the last trading month's daily average range of $3.87. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CMA.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on Tuesday, CMA gained 8.43% on the following trading day.
Prices are trading close to the key technical resistance level at 35.10 (R1). After having been unable to move above 34.34 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 34.84.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Comerica Incorporated. Out of 569 times, CMA closed higher 52.55% 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 54.66% with an average market move of 0.56%.