GD surges 9.15% closing $11.16 higher
General Dynamics Corporation (GD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GD finished Thursday at 133.16 surging $11.16 (9.15%), strongly outperforming the S&P 500 (6.24%). This is the biggest single-day gain in over two years. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 125.71, the stock confirmed its breakout through the previous session high after trading up to $9.17 above it intraday.
Daily Candlestick Chart (GD as at Mar 26, 2020):
Thursday's trading range has been $10.74 (8.63%), that's above the last trading month's daily average range of $8.91. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for GD.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 17th, GD actually lost -7.96% on the following trading day.
Though General Dynamics is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for General Dynamics. Out of 160 times, GD closed higher 50.63% 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 nine trading days, showing a win rate of 56.25% with an average market move of 0.07%.