GLW pushes through 100-day moving average for the first time since July 6th
Corning Incorporated (GLW) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
GLW ended the week -7.49% lower at 32.13 after gaining $0.79 (2.52%) today, significantly outperforming the S&P 500 (1.42%). Trading up to $0.49 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GLW as at Oct 12, 2018):
Friday's trading range has been $0.72 (2.25%), that's slightly above the last trading month's daily average range of $0.65. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for GLW.
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. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns.
The stock managed to break above the 100-day moving average at 31.45 today for the first time since July 6th. When this moving average was taken out the last time on July 6th, GLW gained 3.09% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 34.82.
Though 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 "Close below the lower Bollinger Band" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Corning Inc.. Out of 133 times, GLW closed higher 61.65% 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 54.89% with an average market move of 1.51%.