GLW closes below its opening price unable to hold early session gains
Corning Incorporated (GLW) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
GLW ended the week 1.57% higher at 32.44 after losing $0.38 (-1.16%) today on high volume, slightly underperforming the S&P 500 (-1.12%). Trading $0.27 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GLW as at Sep 18, 2020):
Friday's trading range has been $0.77 (2.35%), that's slightly below the last trading month's daily average range of $0.89. 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 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. After moving higher in the prior session, Corning Incorporated closed lower but above the previous day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on August 31st, GLW actually gained 1.20% on the following trading day.
Prices are trading close to the key technical support level at 31.99 (S1). The market closed back below the 20-day moving average at 32.57 for the first time since September 11th. After having been unable to move above 33.09 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 33.00.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 33.24 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 32.09 where further sell stops might get activated. 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 OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Corning Incorporated. Out of 647 times, GLW closed higher 53.48% 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 53.79% with an average market move of 0.65%.