FITB still stuck within tight trading range
Fifth Third Bancorp (FITB) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FITB ended the week 2.09% higher at 27.39 after gaining $0.18 (0.66%) today, outperforming the S&P 500 (-0.16%). Trading up to $0.25 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FITB as at Jun 14, 2019):
Friday's trading range has been $0.50 (1.84%), that's slightly above the last trading month's daily average range of $0.44. 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 lower than usual for FITB. Prices continued to consolidate within a tight trading range between 26.94 and 27.64 where it has been caught now for the whole last trading week.
The market managed to close back above the 100-day moving average at 27.22. When this moving average was crossed above the last time on Tuesday, FITB actually lost -1.09% on the following trading day. After having been unable to move above 27.54 in the prior session, Fifth Third ran into sellers again around the same price level today, failing to move higher than 27.48.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 27.54 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 26.95 where further sell stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Fifth Third. Out of 20 times, FITB closed lower 55.00% of the time on the next trading day after the market condition occurred.