RF closes higher for the 2nd day in a row
Regions Financial Corporation (RF) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RF ended the month -1.68% lower at 11.12 after gaining $0.26 (2.39%) today, outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 11.07, the share confirmed its breakout through the previous session high after trading up to $0.15 above it intraday.
Daily Candlestick Chart (RF as at Jun 30, 2020):
Tuesday's trading range has been $0.50 (4.65%), that's below the last trading month's daily average range of $0.65. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for RF. Prices continued to consolidate within a tight trading range between 10.60 and 11.37 where it has been caught now for the last three trading days.
In spite of a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on June 25th, RF actually lost -8.58% on the following trading day.
The stock managed to close back above the 50-day moving average at 10.97. Unable to break through the key technical resistance level at 11.22 (R1), Regions Financial closed below it after spiking up to 11.22 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 10.69 in the previous session, RF found buyers again around the same price level today at 10.72.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the close-by swing low at 10.60 where further sell stops might get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Regions Financial. Out of 706 times, RF closed higher 55.38% 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 55.81% with an average market move of 1.17%.