SCHW closes within previous day's range
Charles Schwab Corporation (SCHW) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
SCHW ended Thursday at 34.16 edging lower $0.01 (-0.03%) on low volume, notably underperforming the S&P 500 (6.24%). Trading $2.13 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 9th, SCHW actually gained 8.82% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SCHW as at Mar 26, 2020):
Thursday's trading range has been $3.33 (9.75%), that's slightly above the last trading month's daily average range of $3.07. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SCHW.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Gravestone Doji and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
After trading down to 32.97 earlier during the day, the stock bounced off the key technical support level at 33.89 (S1). The failure to close below the support could increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 36.87 (R1). After having been unable to move above 36.87 in the prior session, Charles Schwab ran into sellers again around the same price level today, missing to move higher than 36.30.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 36.87 where further buy stops might get activated.
Among the seven 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 Charles Schwab. Out of 430 times, SCHW closed higher 58.84% 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 58.84% with an average market move of 0.59%.