GNW enters Death Cross for the first time since September 5, 2019
Genworth Financial Inc (GNW) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
GNW finished the week 15.74% higher at 3.75 after losing $0.43 (-10.29%) today, significantly underperforming the S&P 500 (-3.37%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 3.98, Genworth Financial confirmed its breakout through the previous session low after trading up to $0.25 below it intraday.
Daily Candlestick Chart (GNW as at Mar 27, 2020):
Friday's trading range has been $0.33 (8.25%), that's slightly below the last trading month's daily average range of $0.43. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for GNW.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Monday, GNW actually gained 25.84% on the following trading day.
Prices are trading close to the key technical support level at 3.70 (S1). The market closed back below the 200-day moving average at 4.13.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term. With its 50-day moving average crossing below its 200-day moving average, the share has entered a so-called "Death Cross" for the first time since September 5, 2019. Showing increasing downward momentum in the short and medium-term the "Death Cross" is known to indicate a potential bear market on the horizon.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Death Cross" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Genworth Financial. Out of 5 times, GNW closed higher 60.00% 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 60.00% with an average market move of 3.05%.