GOOS ends the day indecisive
Canada Goose Holdings Inc. Subordinate (GOOS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
GOOS ended the week -2.64% lower at 31.00 after flat today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (GOOS as at Feb 14, 2020):
Friday's trading range has been $0.84 (2.69%), that's below the last trading month's daily average range of $1.27. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GOOS.
Two candlestick patterns are matching today's price action, the Hammer and the Homing Pigeon which are both known as bullish patterns. The last time a Homing Pigeon showed up on June 6, 2019, GOOS gained 3.64% on the following trading day.
Prices are trading close to the key technical support level at 30.34 (S1).
Although the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the close-by swing low at 30.34 where further sell stops could get activated. With prices trading close to this year's low at 29.54, downside momentum might speed up should Canada Goose break out to new lows for the year. As prices are trading close to February's low at 30.03, downside momentum could accelerate should the market mark new lows for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Homing Pigeon" stand out. Its common bullish interpretation has been confirmed for Canada Goose. Out of 4 times, GOOS closed higher 75.00% 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 75.00% with an average market move of 6.51%.