GNRC finds buyers again around 185.55
Generac Holdlings Inc. (GNRC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
GNRC ended Wednesday at 186.52 losing $0.59 (-0.32%), but still slightly outperforming the S&P 500 (-0.46%). Trading $1.62 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GNRC as at Sep 16, 2020):
Wednesday's trading range has been $3.24 (1.73%), that's far below the last trading month's daily average range of $5.99. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GNRC. Prices continued to consolidate within a tight trading range between 181.16 and 188.79 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 184.53 (S1). After having been unable to move lower than 184.75 in the prior session, the market found buyers again around the same price level today at 185.55. The last time this happened on September 2nd, GNRC actually lost -7.00% on the following trading day.
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 194.35, upside momentum could speed up should Generac Holdlings be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Generac Holdlings. Out of 364 times, GNRC closed higher 58.52% 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 58.79% with an average market move of 1.84%.