GATX breaks below Thursday's low


GATX Corporation (GATX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team

Highlights

GATX breaks back below 200-day moving average
GATX dominated by bears dragging the market lower throughout the day
GATX closes lower for the 2nd day in a row
GATX breaks below Thursday's low

Overview

Moving lower for the 2nd day in a row, GATX ended the week 1.05% higher at 77.22 after losing $1.13 (-1.44%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 78.01, the share confirmed its breakout through the prior session low after trading up to $0.94 below it intraday.

Daily Candlestick Chart (GATX as at Feb 14, 2020):

Daily technical analysis candlestick chart for GATX Corporation (GATX) as at Feb 14, 2020

Friday's trading range has been $1.36 (1.74%), that's below the last trading month's daily average range of $1.84. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GATX.

One bearish candlestick pattern matches today's price action, the Black Candle.

The market closed back below the 200-day moving average at 77.86 for the first time since February 7th. When this moving average was crossed below the last time on February 7th, GATX actually gained 2.05% on the following trading day.

While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.

Selling could accelerate should prices move below the nearby swing low at 75.95 where further sell stops might get activated. With prices trading close to this year's low at 73.88, downside momentum could speed up should GATX break out to new lows for the year. As prices are trading close to February's low at 75.87, downside momentum might accelerate should the share mark new lows for the month.

Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for GATX. Out of 298 times, GATX closed higher 53.36% 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 58.05% with an average market move of 0.79%.


Market Conditions for GATX as at Feb 14, 2020

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