CMA pushes through Monday's high
Comerica Incorporated (CMA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CMA finished the month 4.81% higher at 38.10 after gaining $1.09 (2.95%) today on low volume, significantly outperforming the S&P 500 (1.54%). Closing above Monday's high at 37.33, Comerica Incorporated confirmed its breakout through the previous session high after trading up to $1.11 above it intraday.
Daily Candlestick Chart (CMA as at Jun 30, 2020):
Tuesday's trading range has been $2.08 (5.66%), that's slightly below the last trading month's daily average range of $2.41. 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 CMA.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 23rd, CMA lost -5.98% on the following trading day.
Buyers managed to take out the key technical resistance level at 37.01 (now S1), which is likely to act as support going forward.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Comerica Incorporated. Out of 130 times, CMA closed higher 61.54% 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 55.38% with an average market move of 0.83%.