GDDY slides to lowest close since August 4th
GoDaddy Inc. Class A (GDDY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, GDDY ended Wednesday at 73.52 losing $0.41 (-0.55%), slightly underperforming the S&P 500 (-0.46%). Today's close at 73.52 marks the lowest recorded closing price since August 4th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 73.67, the stock confirmed its breakout through the prior session low after trading up to $0.50 below it intraday.
Daily Candlestick Chart (GDDY as at Sep 16, 2020):
Wednesday's trading range has been $1.45 (1.95%), that's below the last trading month's daily average range of $2.35. 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 GDDY.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
After trading down to 73.17 earlier during the day, the market bounced off the key technical support level at 73.25 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on September 4th, GDDY actually lost -3.89% on the following trading day.
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.
Further selling could move prices lower should the market test August's close-by low at 69.45.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for GoDaddy. Out of 27 times, GDDY closed higher 62.96% 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 66.67% with an average market move of 2.28%.