GD closes below its opening price unable to hold early session gains
General Dynamics Corporation (GD) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
GD ended Tuesday at 147.24 losing $0.48 (-0.32%) on high volume, underperforming the S&P 500 (0.36%). Trading $0.92 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on July 24th, GD lost -1.45% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GD as at Aug 04, 2020):
Tuesday's trading range has been $2.29 (1.55%), that's below the last trading month's daily average range of $3.41. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GD. Prices continued to consolidate within a tight trading range between 144.32 and 149.69 where it has been caught now for the whole last trading week.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 149.69 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 144.32 where further sell stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for General Dynamics. Out of 374 times, GD closed higher 54.01% 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 60.43% with an average market move of 0.66%.