GD finds support at 20-day moving average
General Dynamics Corporation (GD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GD ended the month -1.82% lower at 146.74 after losing $2.12 (-1.42%) today on high volume, notably underperforming the S&P 500 (0.77%). Closing below Thursday's low at 146.80, the share confirmed its breakout through the prior session low after trading up to $2.04 below it intraday.
Daily Candlestick Chart (GD as at Jul 31, 2020):
Friday's trading range has been $3.47 (2.34%), that's slightly above the last trading month's daily average range of $3.44. 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.
After trading as low as 144.76 during the day, the market found support at the 20-day moving average at 146.72. The last time this happened on Wednesday, GD actually lost -0.39% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 149.69 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 144.58 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for General Dynamics. Out of 255 times, GD closed higher 58.43% 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 58.82% with an average market move of 0.79%.