ETFC dominated by bulls lifting the market higher throughout the day
E*TRADE Financial Corporation (ETFC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ETFC finished the month 9.2% higher at 49.73 after gaining $1.00 (2.05%) today, outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 49.21, E*TRADE Financial confirmed its breakout through the previous session high after trading up to $0.81 above it intraday.
Daily Candlestick Chart (ETFC as at Jun 30, 2020):
Tuesday's trading range has been $1.61 (3.32%), that's slightly below the last trading month's daily average range of $1.87. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ETFC. Prices continued to consolidate within a tight trading range between 47.83 and 50.37 where it has been caught now for the whole last trading week.
Even with a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, 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 stock managed to close back above the 20-day moving average at 49.31. When this moving average was crossed above the last time on June 25th, ETFC actually lost -3.42% on the following trading day. Prices are trading close to the key technical resistance level at 50.17 (R1).
Though the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 50.37 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 47.83 where further sell stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for E*TRADE Financial. Out of 667 times, ETFC closed higher 54.87% 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 59.07% with an average market move of 1.22%.