GD pushes through Monday's high
General Dynamics Corporation (GD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GD ended the month 1.79% higher at 149.46 after edging higher $0.12 (0.08%) today, notably underperforming the S&P 500 (1.54%). Closing above Monday's high at 149.39, the market confirmed its breakout through the previous session high after trading up to $0.82 above it intraday.
Daily Candlestick Chart (GD as at Jun 30, 2020):
Tuesday's trading range has been $2.51 (1.69%), that's far below the last trading month's daily average range of $4.40. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GD.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on June 25th, GD actually lost -0.62% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for General Dynamics. Out of 80 times, GD closed higher 55.00% 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 53.75% with an average market move of 0.18%.