RF closes above its opening price after recovering from early selling pressure
Regions Financial Corporation (RF) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
RF finished the month -2.34% lower at 10.86 after gaining $0.11 (1.02%) today, slightly outperforming the S&P 500 (0.77%). Trading up to $0.13 lower after the open, Regions Financial managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 10.76, the share confirmed its breakout through the previous session high after trading up to $0.10 above it intraday.
Daily Candlestick Chart (RF as at Jul 31, 2020):
Friday's trading range has been $0.29 (2.71%), that's below the last trading month's daily average range of $0.39. 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 RF. Prices continued to consolidate within a tight trading range between 10.45 and 11.04 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on June 30th, RF actually lost -4.41% on the following trading day.
After trading down to 10.57 earlier during the day, the stock bounced off the key technical support level at 10.58 (S1). The failure to close below the support could increase that levels importance as support going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 11.04 where further buy stops could 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 Regions Financial. Out of 439 times, RF closed higher 56.95% 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 55.35% with an average market move of 0.67%.