GDOT still stuck within tight trading range
Green Dot Corporation Class A $0.001 par value (GDOT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
GDOT ended the week -1.74% lower at 33.95 after gaining $0.43 (1.28%) today, significantly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GDOT as at Feb 14, 2020):
Friday's trading range has been $1.31 (3.98%), that's slightly above the last trading month's daily average range of $1.28. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GDOT. Prices continued to consolidate within a tight trading range between 32.82 and 34.47 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 34.16 (R1). Green Dot ran into sellers again today around 34.13 for the third trading day in a row after having found sellers at 34.16 in the prior session and at 34.12 two days ago. The last time this happened on November 25, 2019, GDOT lost -0.80% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 34.16 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Green Dot. Out of 828 times, GDOT closed higher 51.45% 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 52.90% with an average market move of 0.45%.