GDOT closes lower for the 2nd day in a row
Green Dot Corporation Class A $0.001 par value (GDOT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GDOT ended Wednesday at 48.11 losing $1.63 (-3.28%) on high volume, strongly underperforming the S&P 500 (-0.46%). Today's close at 48.11 marks the lowest recorded closing price since June 29th. Closing below Tuesday's low at 49.56, Green Dot confirmed its breakout through the previous session low after trading up to $1.93 below it intraday.
Daily Candlestick Chart (GDOT as at Sep 16, 2020):
Wednesday's trading range has been $2.97 (5.95%), that's far above the last trading month's daily average range of $1.95. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GDOT.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 49.06 (now R1), which is likely to act as resistance going forward. The last time this happened on September 4th, GDOT lost -3.45% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven 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 Green Dot. Out of 261 times, GDOT closed higher 57.47% 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 60.15% with an average market move of 1.19%.