GLW closes above its opening price after recovering from early selling pressure
Corning Incorporated (GLW) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
GLW ended the week 8.8% higher at 21.38 after edging higher $0.06 (0.28%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.34 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 prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GLW as at May 22, 2020):
Friday's trading range has been $0.44 (2.06%), that's below the last trading month's daily average range of $0.72. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GLW. Prices continued to consolidate within a tight trading range between 20.96 and 21.71 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on April 29th, GLW lost -2.09% on the following trading day.
After trading as low as 20.99 during the day, Corning Incorporated found support at the 20-day moving average at 21.01. Prices are trading close to the key technical resistance level at 21.55 (R1).
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 21.47 where further buy stops could get activated. As prices are trading close to May's high at 21.73, upside momentum might speed up should the share mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Corning Incorporated. Out of 59 times, GLW closed higher 52.54% 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 eight trading days, showing a win rate of 57.63% with an average market move of -0.10%.