Synchrony Financial Extends Losing Streak to Five Days with 7.37% Drop

Synchrony Financial Technical Analysis
Synchrony Financial (SYF) declined 3.07% in the most recent session, extending its losing streak to five consecutive days with a cumulative 7.37% drop. This analysis examines key technical signals using multiple frameworks.
Candlestick Theory
Recent price action shows a pronounced downtrend with five consecutive bearish candles, culminating in a long red candle on August 1 (close: $67.53). This pattern suggests strong selling pressure. Key support emerges near $66.28 (August 1 low), which aligns with the March 2025 swing low. Resistance is firm at $72.90 (July 25 high), where repeated rejections occurred. A sustained break below $66.28 may trigger further downside.
Moving Average Theory
The 50-day EMA ($68.40) crossed below the 100-day EMA ($69.10) in late July, confirming a bearish near-term trend. The 200-day EMA ($60.80) remains upward-sloping, indicating intact long-term bullishness. However, the current price trading below all three moving averages ($67.53 < 50/100/200 EMAs) signals significant short-term weakness. A decisive recovery above the 50-day EMA would be needed to neutralize this structure.
MACD & KDJ Indicators
The MACD (12,26,9) histogram has been negative since July 29, with the signal line accelerating below zero—a classic bearish momentum signal. KDJ readings are oversold (K: 18, D: 22, J: 10), but both remain in a downward trajectory. While oversold KDJ often precedes bounces, the absence of bullish divergence alongside MACD’s bearish alignment suggests limited reversal momentum.
Bollinger Bands
Volatility expanded sharply during the August 1 sell-off, with price piercing the lower band ($66.50). This typically indicates an exhaustion move, but the absence of an immediate reversal candle reduces reliability. The 20-day band width contracted in late July before the breakdown, signaling a volatility squeeze that resolved to the downside. Immediate resistance now aligns with the middle band ($69.00).
Volume-Price Relationship
Down days since July 29 have featured above-average volume, with notable distribution on August 1 (5.02M shares vs. 30-day avg: 3.6M). This volume confirmation validates the bearish trend. Conversely, the July 22 rally on high volume (5.73M shares) now acts as a bull trap, reinforcing $70.50–$71.30 as a supply zone.
Relative Strength Index (RSI)
The 14-day RSI (33.6) is approaching oversold territory but has not breached the 30 threshold. Historically, RSI dips below 30 (e.g., April 2025) preceded short-term rebounds. However, its current downtrend since July 15 (peaking at 67) shows no bullish divergence, limiting reversal confidence.
Fibonacci Retracement
Using the April 2025 low ($46.13) and July 2025 high ($73.90) as anchors, key retracement levels are:
- 38.2%: $63.50
- 50.0%: $60.00
- 61.8%: $56.50
The price is testing the 38.2% retracement ($63.50). A close below this level would open a path to $60.00, where the 200-day EMA converges with the 50% Fibonacci level.
Confluence and Divergences
A critical confluence exists at $63.50–$66.28, merging the 38.2% Fibonacci level, August 1 low, and the 200-day EMA. This zone may catalyze a technical bounce. However, bearish confluence dominates via:
- MACD/KDJ momentum alignment
- Volume-confirmed breakdown
- Moving average dead cross
Notably, the oversold KDJ diverges from RSI’s failure to breach 30, suggesting fragmented downside momentum signals.
Probabilistic Outlook
Synchrony’s technical posture leans bearish short-term, with $63.50 as pivotal support. A rebound appears probable near $63.50–$66.28 given Fibonacci and moving average confluences, but requires volume-backed bullish reversal candles for confirmation. Failure to hold $63.50 may accelerate declines toward $60.00. Long-term bias remains constructive if the 200-day EMA holds.