OMF runs into sellers again around 24.70
OneMain Holdings Inc. (OMF) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, OMF ended Thursday at 22.63 edging higher $0.78 (3.57%), notably underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (OMF as at Mar 26, 2020):
Thursday's trading range has been $2.67 (12.05%), that's slightly below the last trading month's daily average range of $3.11. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for OMF.
After trading down to 22.03 earlier during the day, the stock bounced off the key technical support level at 22.07 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move above 24.25 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 24.70. The last time this happened on March 11th, OMF lost -9.58% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
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 OneMain Holdings. Out of 240 times, OMF closed higher 50.42% 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 57.92% with an average market move of 1.46%.