FITB closes above its opening price after recovering from early selling pressure
Fifth Third Bancorp (FITB) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
FITB ended the month 3.01% higher at 19.86 after gaining $0.17 (0.86%) today on high volume, slightly outperforming the S&P 500 (0.77%). Trading up to $0.44 lower after the open, Fifth Third managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 19.84, the share confirmed its breakout through the prior session high after trading up to $0.04 above it intraday.
Daily Candlestick Chart (FITB as at Jul 31, 2020):
Friday's trading range has been $0.68 (3.46%), that's slightly below the last trading month's daily average range of $0.72. Weekly volatility is also lower, being 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 18.95 and 20.08 where it has been caught now for the whole last trading week.
After trading down to 19.20 earlier during the day, the market bounced off the key technical support level at 19.39 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 19.84 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 19.88. The last time this happened on Tuesday, FITB actually gained 3.79% on the following trading day.
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 20.08 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 18.95 where further sell stops might get activated.
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 453 times, FITB closed higher 58.72% 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 56.73% with an average market move of 0.55%.