ETFC finds buyers around 52.07 for the third day in a row
E*TRADE Financial Corporation (ETFC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ETFC finished Wednesday at 53.01 gaining $0.83 (1.59%), strongly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ETFC as at Sep 16, 2020):
Wednesday's trading range has been $1.71 (3.26%), that's above the last trading month's daily average range of $1.22. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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 51.90 and 53.78 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Tweezer Bottom. The last time a Tweezer Bottom showed up on March 10th, ETFC actually lost -7.04% on the following trading day.
The share managed to close back above the 50-day moving average at 52.88. After spiking up to 53.78 during the day, the market found resistance at the 20-day moving average at 53.51. The stock found buyers again today around 52.07 for the third trading day in a row after having found demand at 52.07 in the previous session and at 52.20 two days ago.
While E*TRADE Financial is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 51.90 where further sell stops could get activated. Further selling might move prices lower should the market test August's nearby low at 50.67.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Bottom" stand out. Its common bullish interpretation has been confirmed for E*TRADE Financial. Out of 17 times, ETFC closed higher 52.94% 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 70.59% with an average market move of 0.39%.