GM closes lower for the 2nd day in a row
General Motors Company (GM) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GM ended Thursday at 36.47 losing $0.72 (-1.94%), strongly underperforming the S&P 500 (0.25%). Today's close at 36.47 marks the lowest recorded closing price since June 17th. Closing below Wednesday's low at 37.05, the stock confirmed its breakout through the previous session low after trading up to $0.90 below it intraday.
Daily Candlestick Chart (GM as at Aug 15, 2019):
Thursday's trading range has been $1.07 (2.88%), that's above the last trading month's daily average range of $0.80. 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 GM.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 36.64 (now R1), which is likely to act as resistance going forward.
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 though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 39.63.
General Motors shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) below 30" stand out. Its common bullish interpretation has been confirmed for General Motors. Out of 30 times, GM closed higher 56.67% 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 53.33% with an average market move of 0.89%.