SYF runs into sellers around 22.29 for the third day in a row
Synchrony Financial (SYF) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SYF ended the month 8.79% higher at 22.16 after edging higher $0.21 (0.96%) today on low volume, underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SYF as at Jun 30, 2020):
Tuesday's trading range has been $0.65 (2.99%), that's far below the last trading month's daily average range of $1.23. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SYF. Prices continued to consolidate within a tight trading range between 21.24 and 22.31 where it has been caught now for the last three trading days.
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 White Candle showed up on June 25th, SYF actually lost -5.98% on the following trading day.
Prices are trading close to the key technical support level at 21.38 (S1). The market ran into sellers again today around 22.29 for the third trading day in a row after having found sellers at 22.17 in the previous session and at 22.31 two days ago.
Synchrony Financial shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the nearby swing low at 21.24 where further sell stops might get activated. As prices are trading close to June's low at 20.19, downside momentum could accelerate should the stock mark new lows for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Synchrony Financial. Out of 80 times, SYF closed higher 60.00% 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 61.25% with an average market move of 0.80%.