GME closes higher for the 4th day in a row
GameStop Corporation (GME) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, GME ended Thursday at 4.41 gaining $0.24 (5.76%), slightly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GME as at Mar 26, 2020):
Thursday's trading range has been $0.47 (11.08%), that's slightly below the last trading month's daily average range of $0.47. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GME.
Prices are trading close to the key technical support level at 4.16 (S1). Unable to break through the key technical resistance level at 4.65 (R1), the share closed below it after spiking up to 4.71 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on March 18th, GME actually gained 11.14% on the following trading day.
Although GameStop is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for GameStop. Out of 77 times, GME closed higher 55.84% 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 55.84% with an average market move of 0.75%.