GNW finds buyers again around 3.16
Genworth Financial Inc (GNW) Technical Analysis Report for Apr 03, 2020 | by Techniquant Editorial Team
GNW ended the week -11.2% lower at 3.33 after edging lower $0.07 (-2.06%) today on low volume, underperforming the S&P 500 (-1.51%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GNW as at Apr 03, 2020):
Friday's trading range has been $0.24 (7.16%), that's 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.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 3.61 (R1). After having been unable to move lower than 3.21 in the previous session, the share found buyers again around the same price level today at 3.16. The last time this happened on Monday, GNW actually lost -18.02% on the following trading day.
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 3.58 where further buy stops could get activated. With prices trading close to this year's low at 2.87, downside momentum might speed up should Genworth Financial break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Genworth Financial. Out of 723 times, GNW closed lower 50.07% 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 49.10% with an average market move of 0.12%.