GD slides to lowest close since August 23rd
General Dynamics (GD) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, GD finished the week -7.01% lower at 191.85 after losing $1.09 (-0.56%) today, notably underperforming the S&P 500 (1.42%). Today's close at 191.85 marks the lowest recorded closing price since August 23rd. Closing below Thursday's low at 192.66, General Dynamics confirmed its breakout through the previous session low after trading up to $3.24 below it intraday.
Daily Candlestick Chart (GD as at Oct 12, 2018):
Friday's trading range has been $6.23 (3.18%), that's far above the last trading month's daily average range of $3.04. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GD.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 189.42 earlier during the day, the market bounced off the key technical support level at 190.72 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Tuesday, GD actually lost -3.11% on the following trading day. Prices are trading close to the key technical resistance level at 193.35 (R1).
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 202.80.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for General Dynamics. Out of 534 times, GD closed higher 57.49% 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 61.99% with an average market move of 0.88%.