SYF breaks back below 20-day moving average
Synchrony Financial (SYF) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
SYF ended the week 7.92% higher at 17.85 after edging lower $0.28 (-1.54%) today on low volume, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday.
Daily Candlestick Chart (SYF as at May 22, 2020):
Friday's trading range has been $0.60 (3.32%), that's below the last trading month's daily average range of $0.94. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SYF.
Prices are trading close to the key technical support level at 17.26 (S1). The stock closed back below the 20-day moving average at 18.00. When this moving average was crossed below the last time on Tuesday, SYF actually gained 2.72% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 18.42 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 17.23 where further sell stops might get activated. As prices are trading close to May's high at 19.35, upside momentum could accelerate should Synchrony Financial mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Synchrony Financial. Out of 452 times, SYF closed higher 53.32% 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 57.30% with an average market move of 0.10%.