GNW still stuck within tight trading range
Genworth Financial Inc (GNW) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, GNW ended the week 0.21% higher at 4.80 after gaining $0.03 (0.63%) today, outperforming the S&P 500 (-0.01%). Today's close at 4.80 marks the highest recorded closing price since June 11, 2018. Trading up to $0.05 lower after the open, Genworth Financial managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 4.78, the market confirmed its breakout through the prior session high after trading up to $0.05 above it intraday.
Daily Candlestick Chart (GNW as at Jan 11, 2019):
Friday's trading range has been $0.13 (2.74%), that's slightly below the last trading month's daily average range of $0.16. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GNW. Prices continued to consolidate within a tight trading range between 4.68 and 4.83 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on January 2nd, GNW actually lost -0.63% on the following trading day.
The stock was bought again around 4.70 after having seen lows at 4.71, 4.70 and 4.69 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 4.68 where further sell stops might get triggered. 2018's high at 4.93 is within reach and we could see further upside momentum should the share manage to break out beyond.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Genworth Financial. Out of 545 times, GNW closed higher 50.83% 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 51.74% with an average market move of 2.64%.