G breaks back above 100-day moving average
Genpact Limited (G) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
G finished Monday at 36.44 gaining $0.49 (1.36%), outperforming the S&P 500 (0.38%). Closing above Friday's high at 36.20, the stock confirmed its breakout through the previous session high after trading up to $0.61 above it intraday.
Daily Candlestick Chart (G as at Jun 01, 2020):
Monday's trading range has been $1.01 (2.81%), that's slightly below the last trading month's daily average range of $1.14. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for G.
The share managed to close back above the 100-day moving average at 36.24. When this moving average was crossed above the last time on May 27th, G actually lost -1.61% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 37.04 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 35.27 where further sell stops could get activated. Further buying might move prices higher should the market test May's close-by high at 37.50.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Genpact. Out of 66 times, G closed lower 60.61% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.00% with an average market move of -0.24%.