ETFC closes within prior day's range after lackluster session
E*TRADE Financial Corporation (ETFC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ETFC ended the week 7.38% higher at 41.16 after edging lower $0.22 (-0.53%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. 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 (ETFC as at May 22, 2020):
Friday's trading range has been $0.73 (1.76%), that's far below the last trading month's daily average range of $1.31. 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 ETFC. Prices continued to consolidate within a tight trading range between 40.86 and 42.36 where it has been caught now for the last three trading days.
E*TRADE Financial closed back below the 100-day moving average at 41.17. When this moving average was crossed below the last time on Tuesday, ETFC actually gained 4.38% on the following trading day. The stock found buyers again today around 40.86 for the third trading day in a row after having found demand at 40.93 in the prior session and at 41.09 two days ago.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 42.36 where further buy stops might get activated. Further buying could move prices higher should the market test April's nearby high at 42.50.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for E*TRADE Financial. Out of 286 times, ETFC closed higher 54.55% 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 58.04% with an average market move of 0.94%.