GD runs into sellers again around 153.26
General Dynamics Corporation (GD) Technical Analysis Report for Jul 24, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GD finished the week 0.83% higher at 150.15 after losing $0.86 (-0.57%) today on low volume, but still slightly outperforming the S&P 500 (-0.62%). Trading $1.64 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GD as at Jul 24, 2020):
Friday's trading range has been $3.74 (2.47%), that's slightly above the last trading month's daily average range of $3.35. 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 GD.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar.
Unable to break through the key technical resistance level at 152.45 (R1), the market closed below it after spiking up to 153.26 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move above 152.92 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 153.26. The last time this happened on July 17th, GD lost -2.32% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for General Dynamics. Out of 118 times, GD closed higher 61.02% 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 62.71% with an average market move of 0.79%.