Synchrony Financial Extends Losses to 2.66% as Bearish Signals Intensify

Synchrony Financial (SYF) fell 0.73% to $57.45 in its latest session, extending its losing streak to two consecutive days with a cumulative decline of 2.66%. This decline highlights ongoing short-term bearish pressure and sets the stage for a multi-faceted technical assessment.
Candlestick Theory
Recent candlestick patterns reveal a bearish reversal signal. The June 3rd session (close: $59.02) formed a green candle, but subsequent days generated two consecutive red candles with lower highs and lows, culminating in a June 5th close at $57.45. This structure resembles a bearish engulfing pattern following the June 4th decline (-1.95%), suggesting waning bullish momentum. Key resistance now clusters near $59.00–$59.50, aligning with recent swing highs, while immediate support resides at $57.00–$56.50. A break below $56.50 would expose the May 23rd low of $55.67.
Moving Average Theory
The 50-day moving average (approximately $58.20) recently crossed below the 100-day MA (near $57.80), signaling deteriorating medium-term momentum. The current price ($57.45) trades below both these averages, confirming short-term bearish control. However, the long-term 200-day MA (roughly $52.50) maintains an upward slope, and the price remains well above this level, preserving the broader uptrend. This divergence between short-term weakness and long-term strength may indicate consolidation within the primary bull cycle.
MACD & KDJ Indicators
The MACD histogram is negative, with the signal line above the MACD line, reinforcing bearish momentum. Concurrently, the KDJ oscillator (particularly the %K and %D lines) is descending toward oversold territory (sub-30), though no bullish crossover is yet evident. While these indicators align in signaling downside momentum, the proximity of KDJ to oversold levels warrants vigilance for a potential reversal if bullish convergence materializes near support zones.
Bollinger Bands
Bollinger Bands are contracting after a period of expansion in late May, indicating reduced volatility. Price action is testing the lower band (~$57.00), which, combined with the band squeeze, suggests imminent directional resolution. A sustained break below the lower band would intensify bearish momentum, while a rebound toward the middle band ($58.50) could signal stabilization. The compression phase heightens the significance of a breakout/breakdown in the coming sessions.
Volume-Price Relationship
Volume patterns validate bearish sentiment. The June 4th decline (-1.95%) occurred on elevated volume (2.69 million shares), confirming distribution. While the June 5th drop saw slightly lower volume (2.52 million), it still exceeded the 30-day average, indicating persistent selling pressure. This divergence between rising volume on down days and inadequate volume on recovery attempts underscores fragile price sustainability.
Relative Strength Index (RSI)
The 14-day RSI (currently ~42) is declining but remains above oversold territory (<30). While not yet signaling an extreme, the downward trajectory reinforces near-term bearish bias. Historically, SYF’s RSI has rebounded from oversold levels (e.g., mid-April 2025), making the $30-$35 RSI zone critical to monitor. Investors should note that RSI alone is a lagging warning; confirmation from trend or volume indicators is essential for reversal validation.
Fibonacci Retracement
Applying Fibonacci retracement to the swing low of $42.10 (April 9, 2025) and high of $61.51 (May 14, 2025), key levels emerge. The 23.6% retracement ($56.93) was tested on June 5th (low: $56.98), offering immediate support. A breach exposes the 38.2% level at $54.10, followed by the 50% retracement at $51.80. Confluence exists near $57.00–$56.90, where the 23.6% Fibonacci aligns with horizontal price support, amplifying its technical relevance for buyers.
Confluence and Divergence
Confluence is notable at $57.00–$56.90, where Fibonacci support, the psychological $57.00 level, and Bollinger’s lower band converge, potentially stabilizing declines. Bearish alignment exists between MACD, moving averages, and volume signals. Divergence is absent currently; however, should RSI or KDJ form bullish divergences while the price establishes a base, it could foreshadow a reversal. The most probable near-term outcome is extended consolidation between $57.00 and $59.00, pending a catalyst-driven breakout.