SYF dominated by bears dragging the market lower throughout the day
Synchrony Financial (SYF) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SYF ended the month -0.14% lower at 22.13 after tanking $1.04 (-4.49%) today, strongly underperforming the S&P 500 (0.77%). This is the biggest single-day loss in over a month. Today's close at 22.13 marks the lowest recorded closing price since July 9th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 22.72, the stock confirmed its breakout through the prior session low after trading up to $0.82 below it intraday.
Daily Candlestick Chart (SYF as at Jul 31, 2020):
Friday's trading range has been $1.13 (4.91%), that's above the last trading month's daily average range of $0.92. 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 SYF.
One bearish candlestick pattern matches today's price action, the Black Candle.
The share closed below the 50-day moving average at 22.79 for the first time since May 15th. When this moving average was crossed below the last time on April 30th, SYF lost -6.47% on the following trading day.
Synchrony Financial shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling could move prices lower should the market test June's nearby low at 20.19.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Synchrony Financial. Out of 90 times, SYF closed higher 52.22% of the time on the next trading day after the market condition occurred.