GGAL closes above its opening price after recovering from early selling pressure
Grupo Financiero Galicia S.A. (GGAL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
GGAL finished the week -7.94% lower at 13.79 after gaining $0.21 (1.55%) today, significantly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.15 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, GGAL actually lost -8.31% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GGAL as at Feb 14, 2020):
Friday's trading range has been $0.40 (2.92%), that's far below the last trading month's daily average range of $0.68. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GGAL.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, Grupo Financiero managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
The stock managed to close back above the 100-day moving average at 13.75.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 14.62.
Though the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 13.43 where further sell stops could get triggered. With prices trading close to this year's low at 13.24, downside momentum might accelerate should GGAL break out to new lows for the year. Trading close to December's low at 12.46 we could see further downside momentum if potential sell stops at the level get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Grupo Financiero. Out of 43 times, GGAL closed higher 60.47% 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 53.49% with an average market move of 2.11%.