CMA closes below its opening price unable to hold early session gains

Comerica Incorporated (CMA) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team


CMA breaks back below 50-day moving average
CMA closes below its opening price unable to hold early session gains
CMA closes lower for the 2nd day in a row
CMA finds buyers again around 37.67
CMA closes within previous day's range after lackluster session


Moving lower for the 2nd day in a row, CMA finished Tuesday at 37.88 losing $0.17 (-0.45%), underperforming the S&P 500 (0.36%). Trading $0.40 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.

Daily Candlestick Chart (CMA as at Aug 04, 2020):

Daily technical analysis candlestick chart for Comerica Incorporated (CMA) as at Aug 04, 2020

Tuesday's trading range has been $0.66 (1.74%), that's far below the last trading month's daily average range of $1.52. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CMA.

One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on July 24th, CMA lost -1.55% on the following trading day.

Prices are trading close to the key technical support level at 37.01 (S1). The share closed back below the 50-day moving average at 38.13 for the first time since July 28th. After having been unable to move lower than 37.70 in the prior session, the stock found buyers again around the same price level today at 37.67.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Buying might accelerate should prices move above the close-by swing high at 38.80 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 36.12 where further sell stops could get triggered.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Comerica Incorporated. Out of 84 times, CMA closed higher 57.14% 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 60.71% with an average market move of 1.29%.

Market Conditions for CMA as at Aug 04, 2020

Loading Market Conditions for CMA (Comerica Incorporated)...
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