SYF pushes through Tuesday's high
Synchrony Financial (SYF) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SYF ended Wednesday at 27.59 surging $1.10 (4.15%) on high volume, notably outperforming the S&P 500 (-0.46%). Today's close at 27.59 marks the highest recorded closing price since March 6th. Closing above Tuesday's high at 27.14, the share confirmed its breakout through the previous session high after trading up to $0.78 above it intraday.
Daily Candlestick Chart (SYF as at Sep 16, 2020):
Wednesday's trading range has been $1.78 (6.68%), that's far above the last trading month's daily average range of $0.91. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher 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. The last time this happened on August 14th, SYF actually lost -2.33% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 26.14 earlier during the day, the stock bounced off the key technical support level at 26.49 (S1). The failure to close below the support might increase that levels significance as support going forward.
Crossing above the upper Bollinger Band for the first time since Monday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 25.35 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Synchrony Financial. Out of 240 times, SYF closed higher 58.33% 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 54.58% with an average market move of 0.24%.