SLM closes lower for the 2nd day in a row
SLM Corporation (SLM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SLM finished the month -3.7% lower at 6.77 after losing $0.07 (-1.02%) today, strongly underperforming the S&P 500 (0.77%). Today's close at 6.77 marks the lowest recorded closing price since July 9th. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SLM as at Jul 31, 2020):
Friday's trading range has been $0.26 (3.8%), that's slightly below the last trading month's daily average range of $0.27. 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 SLM.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern, the Hammer and the Last Engulfing Bottom Pattern which are known as bullish patterns. The last time a Last Engulfing Bottom Pattern showed up on June 23rd, SLM actually lost -4.87% on the following trading day.
After trading down to 6.59 earlier during the day, the market bounced off the key technical support level at 6.75 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 6.89 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 6.85.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to July's low at 6.48, downside momentum could speed up should the stock mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for SLM. Out of 488 times, SLM closed higher 55.94% 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 51.23% with an average market move of 0.91%.