GNW closes above its opening price after recovering from early selling pressure
Genworth Financial Inc (GNW) Technical Analysis Report for Mar 25, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GNW ended Wednesday at 3.99 gaining $0.24 (6.4%), significantly outperforming the S&P 500 (1.15%). Trading up to $0.36 lower after the open, Genworth Financial managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 19th, GNW actually lost -16.92% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (GNW as at Mar 25, 2020):
Wednesday's trading range has been $0.64 (16.16%), that's above the last trading month's daily average range of $0.42. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for GNW.
Four candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
After trading down to 3.60 earlier during the day, the stock bounced off the key technical support level at 3.70 (S2). The failure to close below the support could increase that levels significance as support going forward. After spiking up to 4.24 during the day, the market found resistance at the 200-day moving average at 4.12.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Rickshaw-Man" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Genworth Financial. Out of 17 times, GNW closed higher 64.71% of the time on the next trading day after the market condition occurred.