ETFC finds buyers at key support level
E*TRADE Financial Corporation (ETFC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ETFC finished the month 2.09% higher at 50.77 after edging lower $0.04 (-0.08%) today on low volume, underperforming the S&P 500 (0.77%). Today's close at 50.77 marks the lowest recorded closing price since July 9th. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ETFC as at Jul 31, 2020):
Friday's trading range has been $0.76 (1.49%), that's 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.
One bullish candlestick pattern matches today's price action, the Takuri Line.
After trading down to 50.20 earlier during the day, the share bounced off the key technical support level at 50.37 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on July 20th, ETFC gained 0.99% on the following trading day.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to July's low at 48.65, downside momentum might speed up should E*TRADE Financial mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for E*TRADE Financial. Out of 451 times, ETFC closed higher 57.43% 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 56.98% with an average market move of 0.75%.