SCHW slides to lowest close since July 1st
Charles Schwab Corporation (SCHW) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SCHW finished the month -1.75% lower at 33.15 after losing $0.43 (-1.28%) today, strongly underperforming the S&P 500 (0.77%). Today's close at 33.15 marks the lowest recorded closing price since July 1st. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SCHW as at Jul 31, 2020):
Friday's trading range has been $0.78 (2.33%), that's below the last trading month's daily average range of $0.98. 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 SCHW.
Prices are trading close to the key technical resistance level at 33.53 (R1).
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the nearby swing high at 34.11 where further buy stops might get activated. Further selling could move prices lower should the market test June's close-by low at 31.63.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Charles Schwab. Out of 269 times, SCHW closed higher 55.76% 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 59.48% with an average market move of 0.94%.