GD runs into sellers around 150.86 for the third day in a row
General Dynamics Corporation (GD) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
GD finished Thursday at 147.30 edging higher $0.16 (0.11%) on low volume, slightly underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GD as at Jul 02, 2020):
Thursday's trading range has been $3.80 (2.54%), that's slightly below the last trading month's daily average range of $4.36. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GD.
One bearish candlestick pattern matches today's price action, the Black Candle.
The market ran into sellers again today around 150.86 for the third trading day in a row after having found sellers at 150.61 in the previous session and at 150.21 two days ago. The last time this happened on June 15th, GD actually gained 1.89% on the following trading day.
General Dynamics shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the close-by swing low at 146.91 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for General Dynamics. Out of 113 times, GD closed higher 57.52% 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 57.52% with an average market move of 0.39%.