GNRC runs into sellers again around 178.71
Generac Holdlings Inc. (GNRC) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
GNRC finished Monday at 166.32 tanking $12.28 (-6.88%) on high volume, significantly underperforming the S&P 500 (0.27%). This is the biggest single-day loss ever recorded for Generac Holdlings. The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 172.72, the market confirmed its breakout through the prior session low after trading up to $7.40 below it intraday.
Daily Candlestick Chart (GNRC as at Aug 10, 2020):
Monday's trading range has been $13.39 (7.52%), that's far above the last trading month's daily average range of $4.99. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for GNRC.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on August 6th, GNRC actually gained 3.25% on the following trading day.
After having been unable to move above 179.35 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 178.71.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 147.36.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Generac Holdlings. Out of 480 times, GNRC closed higher 55.83% 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 59.38% with an average market move of 2.20%.