GNRC breaks back above 200-day moving average
Generac Holdlings Inc. (GNRC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GNRC ended Thursday at 96.37 gaining $8.60 (9.8%) on low volume, notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 90.67, the stock confirmed its breakout through the previous session high after trading up to $6.08 above it intraday.
Daily Candlestick Chart (GNRC as at Mar 26, 2020):
Thursday's trading range has been $9.06 (10.15%), that's above the last trading month's daily average range of $7.07. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for GNRC.
One bullish candlestick pattern matches today's price action, the White Candle.
Generac Holdlings managed to close back above the 200-day moving average at 88.67 for the first time since March 19th. When this moving average was crossed above the last time on March 17th, GNRC actually lost -6.61% on the following trading day. Prices are trading close to the key technical resistance level at 101.71 (R1).
While the market 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 nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Generac Holdlings. Out of 160 times, GNRC closed higher 56.88% 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 55.00% with an average market move of 0.76%.