October 25 Chart of the Day - Synchrony Financial
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Synchrony Financial (SYF), originally a spinoff of GE Capital's retail financing business, is the largest provider of private-label credit cards in the United States by both outstanding receivables and purchasing volume.
Historical price information on its chart goes back a little less than ten years, typically we like to feature a chart with more years data than this but in this case because price has moved in a technically correct fashion we'll take a look.
Well off its $52.49 all time highs (ATH), using price action technical analysis tools native to every charting platform we can see on the monthly chart that price is in a familiar area around $27.50.
Price has tested this level six times during the last 18 months or so and each time the bulls have stepped in and price has risen.
Investors are hoping that will continue otherwise if price breaks and holds below this level it may want to visit the $22 area.
Like so many other equities off their ATHs and overall concerns for the broader markets going lower investors may not be so lucky this time around should the level fail.
For traders, they shouldn't really care which way price moves, so long as it moves...
Down on the weekly chart we've identified additional potential levels of interest in both directions should price decide to hold this level again.
At some point, the bears or bulls of this chart will take firm control and move price in the direction they want to.
Until then we'll keep watching it...
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
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