Synchrony Financial Rallies 4.37% on Bullish Technical Signals Two-Day Gain Hits 5.98%

Synchrony Financial (SYF) has rallied 4.37% in the most recent session, extending its two-day gain to 5.98%. This sharp reversal follows a recent pullback from a 52-week high of $84.91, suggesting potential short-term momentum. The price action indicates a possible breakout from a consolidation pattern, with key support levels at $79.78 and $76.51 historically holding during prior declines. Resistance is currently concentrated near $84.55, the recent closing high, which may act as a psychological barrier for further upside.
Candlestick Theory
The two-day bullish reversal pattern, characterized by a strong close near the high of the range, suggests buyers are regaining control. A potential "harami" or "bullish engulfing" pattern may form if the prior bearish candle is fully contained within the recent bullish session. Key support levels at $79.78 (previous low) and $76.51 (December trough) remain critical for trend validation. A break above $84.91 could target $88.00, aligning with a 38.2% Fibonacci retracement of the recent downtrend.
Moving Average Theory
The 50-day moving average (approximately $74.50) is currently above the 100-day ($73.00) and 200-day ($71.50) averages, indicating a bullish bias. The 50-day MA has crossed above the 100-day MA, forming a "golden cross" signal for medium-term bulls. However, the 200-day MA remains a critical threshold; a sustained close above $84.55 could confirm a long-term trend reversal. Short-term momentum appears intact, with the 50-day MA acting as dynamic support.
MACD & KDJ Indicators
The MACD line (12, 26, 9) has crossed above the signal line, with a histogram expansion suggesting growing bullish momentum. The KDJ indicator shows %K at 78 and %D at 65, indicating overbought conditions but no immediate divergence from price. A potential bearish crossover in KDJ may signal caution if the price fails to sustain above $84.55. The RSI (14) at 68 suggests proximity to overbought territory, though a break above 70 would strengthen the case for a continuation.
Bollinger Bands
Volatility has expanded, with the price near the upper band of the 20-period Bollinger Bands. This contraction-to-expansion pattern suggests a potential breakout. The bands’ width has widened from a 15-day contraction in early December, increasing the probability of a sustained move higher. A close above $84.91 would align with the upper band’s trajectory, reinforcing the bullish case.
Volume-Price Relationship
Trading volume has surged to $345.8 million, a 35% increase from the prior session, validating the recent price strength. However, volume remains below the 30-day average of $380 million, suggesting the rally may lack broad participation. A follow-through surge in volume above $400 million would enhance the credibility of a breakout above $84.91.
Relative Strength Index (RSI)
The RSI (14) stands at 68, nearing overbought levels but not yet at a critical threshold. A close above 70 would confirm bullish momentum, though it may also invite profit-taking. The indicator’s alignment with MACD suggests a potential for a short-term pullback to $81.01 (prior support) before resuming higher.
Fibonacci Retracement
Applying Fibonacci levels to the December 10–24 consolidation range, key resistance is at $84.91 (0.786 retracement) and $88.00 (1.272 extension). A break above $84.91 would target $88.00, with $81.01 (0.382 retracement) as an immediate support.

Confluence of bullish signals is evident in the alignment of MACD, moving averages, and Fibonacci levels, suggesting a high probability of a continuation above $84.91. However, the RSI’s proximity to overbought territory and moderate volume raise caution about sustainability. Divergences between KDJ and price could signal a near-term reversal if the price fails to hold above $81.01. Traders may prioritize a breakout above $84.91 with increasing volume as a confirmation trigger, while monitoring the 200-day MA for long-term trend validation.