SLM runs into sellers around 12.07 for the third day in a row
SLM Corporation (SLM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
SLM finished the week 6.82% higher at 12.06 after gaining $0.14 (1.17%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 12.06 marks the highest recorded closing price since July 10, 2018. Trading up to $0.13 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 12.04, the stock confirmed its breakout through the prior session high after trading up to $0.03 above it intraday.
Daily Candlestick Chart (SLM as at Feb 14, 2020):
Friday's trading range has been $0.29 (2.43%), that's slightly below the last trading month's daily average range of $0.35. 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 SLM. Prices continued to consolidate within a tight trading range between 11.71 and 12.09 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on February 7th, SLM actually gained 2.75% on the following trading day.
After trading down to 11.78 earlier during the day, the share bounced off the key technical support level at 11.84 (S1). The failure to close below the support might increase that levels importance as support going forward. SLM ran into sellers again today around 12.07 for the third trading day in a row after having found sellers at 12.04 in the previous session and at 12.09 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 12.09 where further buy stops might get activated. Trading close to 2018's high at 12.46 we could see further upside momentum if potential buy stops at the level get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for SLM. Out of 88 times, SLM closed lower 56.82% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 55.68% with an average market move of -1.11%.