GGG dominated by bulls lifting the market higher throughout the day
Graco Inc. (GGG) Technical Analysis Report for Apr 02, 2020 | by Techniquant Editorial Team
GGG ended Thursday at 46.47 edging higher $0.96 (2.11%) on low volume, slightly underperforming the S&P 500 (2.28%). 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 in a lackluster session.
Daily Candlestick Chart (GGG as at Apr 02, 2020):
Thursday's trading range has been $1.67 (3.69%), that's far below the last trading month's daily average range of $3.03. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GGG.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on Tuesday, GGG actually lost -6.61% on the following trading day.
The market managed to close back above the 20-day moving average at 45.60. Unable to break through the key technical resistance level at 46.68 (R1), the stock closed below it after spiking up to 46.90 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 44.80 in the previous session, the share found buyers again around the same price level today at 45.23.
Although Graco is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 49.10 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 44.80 where further sell stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Graco. Out of 505 times, GGG closed higher 57.82% 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 57.62% with an average market move of 0.59%.