GD finds buyers again around 147.10
General Dynamics Corporation (GD) Technical Analysis Report for Jul 28, 2020 | by Techniquant Editorial Team
GD ended Tuesday at 148.57 gaining $0.59 (0.4%), notably outperforming the S&P 500 (-0.65%) ahead of Wednesday's earnings report. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GD as at Jul 28, 2020):
GD is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $2.14 per share. The company's last earnings report was released on April 29, 2020, when General Dynamics Corporation reported earnings of $2.43 per share failing market expectations by -1.6%.
Tuesday's trading range has been $3.55 (2.41%), that's slightly above the last trading month's daily average range of $3.37. 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 bullish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Thrusting Pattern. The last time a Thrusting Pattern showed up on April 13, 2017, GD actually gained 1.16% on the following trading day.
Prices are trading close to the key technical support level at 146.91 (S1). After having been unable to move lower than 147.51 in the prior session, the stock found buyers again around the same price level today at 147.10.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the close-by swing low at 145.35 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day before Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for General Dynamics. Out of 31 times, GD closed higher 64.52% 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 51.61% with an average market move of 0.56%.