GNW finds buyers again around 1.95
Genworth Financial Inc (GNW) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
GNW finished the month -11.69% lower at 2.04 after gaining $0.03 (1.49%) today, outperforming the S&P 500 (0.77%). Trading up to $0.06 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GNW as at Jul 31, 2020):
Friday's trading range has been $0.11 (5.47%), that's slightly below the last trading month's daily average range of $0.12. 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 notably lower than usual for GNW.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Even with a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on Tuesday, GNW actually lost -7.73% on the following trading day.
After trading down to 1.95 earlier during the day, Genworth Financial bounced off the key technical support level at 1.97 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 1.97 in the prior session, the share found buyers again around the same price level today at 1.95.
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 1.87, downside momentum might speed up should GNW break out to new lows for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Genworth Financial. Out of 478 times, GNW closed lower 50.84% 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 54.18% with an average market move of -0.46%.