GNW breaks below Tuesday's low
Genworth Financial Inc (GNW) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GNW finished Wednesday at 3.46 losing $0.07 (-1.98%), notably underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 3.51, the market confirmed its breakout through the previous session low after trading up to $0.06 below it intraday.
Daily Candlestick Chart (GNW as at Sep 16, 2020):
Wednesday's trading range has been $0.17 (4.71%), that's slightly below the last trading month's daily average range of $0.22. Weekly volatility is also lower, being way below 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.
Prices are trading close to the key technical support level at 3.42 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to September's low at 3.17, downside momentum could accelerate should the stock mark new lows for the month.
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. Although it is usually interpreted as bearish, it has actually shown to be bullish for Genworth Financial. Out of 505 times, GNW closed higher 50.89% 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 51.88% with an average market move of 0.62%.