GD closes higher for the 2nd day in a row
General Dynamics Corporation (GD) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GD ended Monday at 156.56 surging $3.59 (2.35%), strongly outperforming the S&P 500 (0.27%). Today's close at 156.56 marks the highest recorded closing price since June 19th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (GD as at Aug 10, 2020):
Monday's trading range has been $3.34 (2.18%), that's slightly above the last trading month's daily average range of $3.17. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 155.37 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since June 8th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 148.85 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on June 5th, GD gained 3.43% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. Its common bullish interpretation has been confirmed for General Dynamics. Out of 120 times, GD closed higher 55.83% 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 55.83% with an average market move of 0.37%.