GBT falls to lowest close since July 7th
Global Blood Therapeutics Inc. (GBT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
GBT finished the month 6.89% higher at 67.48 after tanking $2.02 (-2.91%) today, significantly underperforming the S&P 500 (0.77%). Today's close at 67.48 marks the lowest recorded closing price since July 7th.
Daily Candlestick Chart (GBT as at Jul 31, 2020):
Friday's trading range has been $3.12 (4.49%), that's slightly above the last trading month's daily average range of $2.94. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GBT.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on Wednesday, GBT gained 1.50% on the following trading day.
The stock closed below the 50-day moving average at 68.22 for the first time since July 9th.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
As prices are trading close to July's low at 66.00, downside momentum could speed up should the share mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Global Blood. Out of 138 times, GBT closed higher 58.70% 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 55.80% with an average market move of 1.88%.