GMED pushes through Monday's high
Globus Medical Inc. Class A (GMED) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, GMED ended the month -12.7% lower at 47.71 after gaining $0.31 (0.65%) today, underperforming the S&P 500 (1.54%). Trading up to $0.45 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 26th, GMED gained 4.89% on the following trading day. Closing above Monday's high at 47.47, the share confirmed its breakout through the previous session high after trading up to $0.60 above it intraday.
Daily Candlestick Chart (GMED as at Jun 30, 2020):
Tuesday's trading range has been $1.23 (2.6%), that's below the last trading month's daily average range of $1.85. 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 GMED.
Globus Medical managed to close back above the 100-day moving average at 47.46 for the first time since June 19th. Prices are trading close to the key technical resistance level at 48.33 (R1).
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 48.33 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Globus Medical. Out of 618 times, GMED closed higher 55.18% 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 58.90% with an average market move of 0.89%.