SNV closes lower for the 2nd day in a row
Synovus Financial Corp. (SNV) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SNV finished Wednesday at 22.11 losing $0.18 (-0.81%) on high volume, slightly underperforming the S&P 500 (-0.46%). Trading up to $0.42 lower after the open, Synovus Financial managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SNV as at Sep 16, 2020):
Wednesday's trading range has been $1.00 (4.55%), that's far above the last trading month's daily average range of $0.75. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SNV.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
After trading as low as 21.58 during the day, the share found support at the 20-day moving average at 21.95. Unable to break through the key technical resistance level at 22.58 (R1), the stock closed below it after spiking up to 22.58 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on September 3rd, SNV actually gained 2.71% on the following trading day. After having been unable to move above 22.57 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 22.58.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 22.73 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 21.39 where further sell stops could get activated. As prices are trading close to September's high at 23.18, upside momentum might accelerate should SNV mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish High-Wave Candle" stand out. Its common bullish interpretation has been confirmed for Synovus Financial. Out of 26 times, SNV closed higher 65.38% 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 eight trading days, showing a win rate of 57.69% with an average market move of 0.54%.