GNW pushes through Monday's high
Genworth Financial Inc (GNW) Technical Analysis Report for Mar 24, 2020 | by Techniquant Editorial Team
GNW finished Tuesday at 3.75 surging $0.77 (25.84%), significantly outperforming the S&P 500 (9.38%). This is the biggest single-day gain in over a year. Closing above Monday's high at 3.64, the stock confirmed its breakout through the prior session high after trading up to $0.18 above it intraday.
Daily Candlestick Chart (GNW as at Mar 24, 2020):
Tuesday's trading range has been $0.38 (10.73%), that's slightly below the last trading month's daily average range of $0.40. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for GNW.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 3.40 (S1). Unable to break through the key technical resistance level at 3.76 (R1), the market closed below it after spiking up to 3.82 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on March 17th, GNW lost -14.89% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 4.09.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Genworth Financial. Out of 101 times, GNW closed lower 49.50% 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 57.43% with an average market move of -1.74%.