CMA breaks back below 20-day moving average
Comerica Incorporated (CMA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CMA finished the week 8.69% higher at 32.65 after edging lower $0.37 (-1.12%) today on low volume, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CMA as at May 22, 2020):
Friday's trading range has been $1.63 (4.93%), that's slightly below the last trading month's daily average range of $1.89. 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 CMA.
In spite of a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on April 24th, CMA actually gained 7.41% on the following trading day.
The share closed back below the 20-day moving average at 32.72. Comerica Incorporated was sold again around 33.55 after having seen highs at 33.60, 33.81 and 33.66 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 33.81 where further buy stops could get activated. As prices are trading close to May's high at 34.13, upside momentum might speed up should the stock mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous three Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Comerica Incorporated. Out of 21 times, CMA closed higher 71.43% 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 71.43% with an average market move of 2.24%.