GOOS dominated by bulls lifting the market higher throughout the day
Canada Goose Holdings Inc. Subordinate (GOOS) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
GOOS finished the week -11.45% lower at 50.44 after gaining $3.25 (6.89%) today, strongly outperforming the S&P 500 (1.42%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 49.19, the market confirmed its breakout through the prior session high after trading up to $1.37 above it intraday.
Daily Candlestick Chart (GOOS as at Oct 12, 2018):
Friday's trading range has been $1.58 (3.22%), that's below the last trading month's daily average range of $2.78. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for GOOS.
Three candlestick patterns are matching today's price action, the Bullish Short Candle, the Morning Star and the White Candle which are known as bullish patterns.
Buyers managed to take out the key technical resistance level at 49.68 (now S1), which is likely to act as support going forward. The last time this happened on October 5th, GOOS actually lost -4.69% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 57.08.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Morning Star" stand out. Its common bullish interpretation has been confirmed for Canada Goose. Out of 1 times, GOOS closed higher 100.00% 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 100.00% with an average market move of 4.46%.