GNW closes within prior day's range
Genworth Financial Inc (GNW) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, GNW ended the week 12.57% higher at 4.30 after gaining $0.02 (0.47%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 4.30 marks the highest recorded closing price since January 23rd. Trading up to $0.07 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GNW as at Feb 14, 2020):
Friday's trading range has been $0.19 (4.43%), that's above the last trading month's daily average range of $0.15. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GNW.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
Prices are trading close to the key technical support level at 4.20 (S1). Unable to break through the key technical resistance level at 4.40 (R1), Genworth Financial closed below it after spiking up to 4.41 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Monday, GNW actually gained 3.22% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 4.45, upside momentum might accelerate should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Genworth Financial. Out of 394 times, GNW closed lower 52.28% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 49.49% with an average market move of 0.01%.