GLW closes below its opening price unable to hold early session gains
Corning Incorporated (GLW) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
GLW finished Wednesday at 32.64 losing $0.18 (-0.55%), slightly underperforming the S&P 500 (-0.46%). Trading $0.29 higher after the open, Corning Incorporated was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 32.81, the market confirmed its breakout through the previous session low after trading up to $0.25 below it intraday.
Daily Candlestick Chart (GLW as at Sep 16, 2020):
Wednesday's trading range has been $0.68 (2.06%), that's slightly below the last trading month's daily average range of $0.83. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GLW.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar.
Prices are trading close to the key technical support level at 31.99 (S1). After having been unable to move above 33.23 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 33.24. The last time this happened on August 31st, GLW actually gained 1.20% on the following trading day.
Though the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 33.86, upside momentum could speed up should GLW be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Corning Incorporated. Out of 344 times, GLW closed higher 55.23% 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 57.56% with an average market move of 0.78%.