GGG stuck within tight trading range
Graco Inc. (GGG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
GGG finished the week 2.32% higher at 56.03 after losing $0.32 (-0.57%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GGG as at Feb 14, 2020):
Friday's trading range has been $0.61 (1.08%), that's far below the last trading month's daily average range of $0.89. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GGG. Prices continued to consolidate within a tight trading range between 55.69 and 56.56 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on February 5th, GGG lost -0.40% on the following trading day.
Prices are trading close to the key technical support level at 55.60 (S1). After having been unable to move above 56.55 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 56.56.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Graco. Out of 420 times, GGG closed higher 55.00% 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 60.95% with an average market move of 0.98%.