SLM pushes through key technical resistance level
SLM Corporation (SLM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SLM finished the month -7.26% lower at 7.03 after edging higher $0.08 (1.15%) today, slightly underperforming the S&P 500 (1.54%). Closing above Monday's high at 7.01, the market confirmed its breakout through the previous session high after trading up to $0.09 above it intraday.
Daily Candlestick Chart (SLM as at Jun 30, 2020):
Tuesday's trading range has been $0.24 (3.47%), that's far below the last trading month's daily average range of $0.35. 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 SLM.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on May 22nd, SLM actually gained 4.38% on the following trading day.
Buyers managed to take out the key technical resistance level at 6.99 (now S1), which is likely to act as support going forward.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for SLM. Out of 243 times, SLM closed higher 50.62% 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 54.73% with an average market move of 1.06%.