SYF breaks back above 100-day moving average
Synchrony Financial (SYF) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
SYF ended Thursday at 21.86 edging higher $0.25 (1.16%), outperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Trading $0.48 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 23rd, SYF lost -7.65% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SYF as at Jul 02, 2020):
Thursday's trading range has been $1.03 (4.61%), that's slightly below the last trading month's daily average range of $1.20. Weekly volatility is also lower, being way 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 22.83 where it has been caught now for the whole last trading week.
Synchrony Financial managed to close back above the 100-day moving average at 21.50. After having been unable to move above 22.67 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 22.83.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the nearby swing low at 21.40 where further sell stops might get activated. Further selling could move prices lower should the market test June's close-by low at 20.19.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Synchrony Financial. Out of 310 times, SYF closed higher 52.90% 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 54.52% with an average market move of 0.84%.