GNW dominated by bears dragging the market lower throughout the day
Genworth Financial Inc (GNW) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
GNW finished the week 17.41% higher at 3.17 after losing $0.19 (-5.65%) today, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GNW as at May 22, 2020):
Friday's trading range has been $0.30 (8.9%), that's above the last trading month's daily average range of $0.22. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently 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 Tuesday, GNW actually gained 12.13% on the following trading day.
Prices are trading close to the key technical support level at 3.11 (S1). After spiking up to 3.42 during the day, the stock found resistance at the 50-day moving average at 3.40. After having been unable to move above 3.38 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 3.42.
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Genworth Financial. Out of 502 times, GNW closed higher 51.39% 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 nine trading days, showing a win rate of 52.19% with an average market move of 0.48%.