GGG runs into sellers again around 56.88
Graco Inc. (GGG) Technical Analysis Report for Feb 20, 2020 | by Techniquant Editorial Team
GGG finished Thursday at 56.63 losing $0.23 (-0.4%), slightly underperforming the S&P 500 (-0.38%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GGG as at Feb 20, 2020):
Thursday's trading range has been $0.81 (1.43%), that's slightly below the last trading month's daily average range of $0.91. Weekly volatility is also lower, being way 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 55.65 and 56.99 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
After having been unable to move above 56.99 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 56.88. The last time this happened on February 14th, GGG actually gained 0.62% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 56.99 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Graco. Out of 765 times, GGG closed higher 54.12% 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 58.95% with an average market move of 0.62%.