SCHW breaks below Thursday's low
Charles Schwab Corporation (SCHW) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SCHW finished the week 0.83% higher at 32.83 after edging lower $0.39 (-1.17%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 32.90, the share confirmed its breakout through the prior session low after trading up to $0.46 below it intraday.
Daily Candlestick Chart (SCHW as at May 22, 2020):
Friday's trading range has been $0.79 (2.39%), that's below the last trading month's daily average range of $1.17. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SCHW.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on April 15th, SCHW actually lost -0.20% on the following trading day.
Charles Schwab shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling could move prices lower should the market test April's close-by low at 31.59.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Charles Schwab. Out of 107 times, SCHW closed higher 57.01% 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 62.62% with an average market move of 1.55%.