CMA pushes through key technical resistance level
Comerica Incorporated (CMA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CMA ended Wednesday at 41.18 gaining $0.59 (1.45%), notably outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 40.99, the stock confirmed its breakout through the previous session high after trading up to $1.08 above it intraday.
Daily Candlestick Chart (CMA as at Sep 16, 2020):
Wednesday's trading range has been $1.77 (4.37%), that's above the last trading month's daily average range of $1.36. Weekly volatility is also higher, being slightly above 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 Bearish Hikkake Pattern and the Last Engulfing Top Pattern which are both known as bearish patterns. The last time a Bearish Hikkake Pattern showed up on September 3rd, CMA actually gained 2.55% on the following trading day.
Buyers managed to take out the key technical resistance level at 40.89 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying could move prices higher should the market test August's close-by high at 43.56.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Comerica Incorporated. Out of 131 times, CMA closed higher 61.07% 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 55.73% with an average market move of 0.73%.