SYF dominated by bulls lifting the market higher throughout the day
Synchrony Financial (SYF) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
SYF finished the week 7.05% higher at 23.69 after gaining $0.60 (2.6%) today, strongly outperforming the S&P 500 (0.06%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 23.34, the market confirmed its breakout through the previous session high after trading up to $0.35 above it intraday.
Daily Candlestick Chart (SYF as at Aug 07, 2020):
Friday's trading range has been $1.14 (4.99%), that's far above the last trading month's daily average range of $0.87. 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.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, three candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on July 27th, SYF lost -2.78% on the following trading day.
Prices are trading close to the key technical resistance level at 23.84 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying could move prices higher should the market test July's nearby high at 24.13.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Synchrony Financial. Out of 7 times, SYF closed lower 85.71% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 57.14% with an average market move of -0.40%.