GNW closes above its opening price after recovering from early selling pressure
Genworth Financial Inc (GNW) Technical Analysis Report for Apr 02, 2020 | by Techniquant Editorial Team
GNW finished Thursday at 3.40 gaining $0.35 (11.48%), strongly outperforming the S&P 500 (2.28%). Trading up to $0.15 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. 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 Apr 02, 2020):
Thursday's trading range has been $0.37 (11.01%), that's slightly below the last trading month's daily average range of $0.50. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GNW.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on March 19th, GNW actually lost -16.92% on the following trading day.
Prices are trading close to the key technical resistance level at 3.70 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 2.87, downside momentum could speed up should Genworth Financial break out to new lows for the year.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Genworth Financial. Out of 415 times, GNW closed lower 48.19% 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 52.77% with an average market move of 0.18%.