GPC closes within prior day's range after lackluster session
Genuine Parts Company (GPC) Technical Analysis Report for Nov 20, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GPC ended the week -2.09% lower at 96.96 after losing $1.04 (-1.06%) today, slightly underperforming the S&P 500 (-0.68%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GPC as at Nov 20, 2020):
Friday's trading range has been $1.66 (1.69%), that's far below the last trading month's daily average range of $2.73. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GPC.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on November 12th, GPC actually gained 3.23% on the following trading day.
Prices are trading close to the key technical support level at 96.33 (S1). The stock closed back below the 50-day moving average at 97.59 for the first time since November 12th. After having been unable to move lower than 96.48 in the previous session, the share found buyers again around the same price level today at 96.41.
Genuine Parts shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling could accelerate should prices move below the close-by swing low at 96.35 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Genuine Parts. Out of 58 times, GPC closed higher 53.45% 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 10 trading days, showing a win rate of 58.62% with an average market move of 0.60%.