FITB finds buyers again around 29.43
Fifth Third Bancorp (FITB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
FITB finished the week 0.37% higher at 29.60 after losing $0.23 (-0.77%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.19 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FITB as at Feb 14, 2020):
Friday's trading range has been $0.46 (1.55%), that's slightly below the last trading month's daily average range of $0.56. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FITB.
After moving higher in the previous session, the stock closed lower but above the prior day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on July 31, 2019, FITB lost -4.45% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 29.43 earlier during the day, the share bounced off the key technical support level at 29.53 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 29.38 in the previous session, Fifth Third found buyers again around the same price level today at 29.43.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 30.05 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 29.38 where further sell stops might get triggered.
Among the eight 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 Fifth Third. Out of 461 times, FITB closed higher 58.57% 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 56.83% with an average market move of 0.52%.