SYF closes within previous day's range after lackluster session
Synchrony Financial (SYF) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
SYF finished the week 1.69% higher at 33.75 after losing $0.07 (-0.21%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. 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 (SYF as at Feb 14, 2020):
Friday's trading range has been $0.42 (1.24%), that's below the last trading month's daily average range of $0.62. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SYF.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Bearish Spinning Top which are both known as bearish patterns. The last time a Bearish Hikkake Pattern showed up on February 4th, SYF actually gained 2.39% on the following trading day.
While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Synchrony Financial. Out of 70 times, SYF closed higher 52.86% 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 five trading days, showing a win rate of 55.71% with an average market move of -0.06%.