GATX breaks back above 50-day moving average
GATX Corporation (GATX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, GATX ended Wednesday at 64.70 gaining $0.83 (1.3%) on high volume, strongly outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GATX as at Sep 16, 2020):
Wednesday's trading range has been $2.15 (3.36%), that's above the last trading month's daily average range of $1.73. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GATX.
The market managed to close back above the 50-day moving average at 64.02 for the first time since September 9th. After spiking up to 66.13 during the day, the stock found resistance at the 20-day moving average at 65.50. The last time this happened on August 4th, GATX actually gained 2.82% on the following trading day. After having been unable to move lower than 63.79 in the prior session, the share found buyers again around the same price level today at 63.98.
Though GATX is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for GATX. Out of 503 times, GATX closed higher 53.28% 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 55.67% with an average market move of 0.55%.