SCHW dominated by bulls lifting the market higher throughout the day
Charles Schwab Corporation (SCHW) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SCHW finished the month -6.04% lower at 33.74 after gaining $0.99 (3.02%) today, notably 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 32.78, the market confirmed its breakout through the prior session high after trading up to $1.21 above it intraday.
Daily Candlestick Chart (SCHW as at Jun 30, 2020):
Tuesday's trading range has been $1.46 (4.48%), that's slightly below the last trading month's daily average range of $1.61. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SCHW.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on May 18th, SCHW lost -3.57% on the following trading day.
Buyers managed to take out the key technical resistance level at 32.78 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 34.81 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Trading close to April's low at 31.59 we could see further downside momentum if potential sell stops at the level get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Charles Schwab. Out of 111 times, SCHW closed higher 50.45% 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 63.06% with an average market move of 1.08%.