GOOS pushes through Wednesday's high
Canada Goose Holdings Inc. Subordinate (GOOS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, GOOS finished Thursday at 20.65 gaining $1.06 (5.41%), underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 20.20, the share confirmed its breakout through the prior session high after trading up to $1.62 above it intraday.
Daily Candlestick Chart (GOOS as at Mar 26, 2020):
Thursday's trading range has been $2.07 (10.41%), that's slightly above the last trading month's daily average range of $1.90. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GOOS.
The market managed to close above the 20-day moving average at 20.51 for the first time since February 6th. When this moving average was crossed above the last time on February 6th, GOOS actually lost -4.38% on the following trading day. Unable to break through the key technical resistance level at 21.52 (R1), Goose closed below it after spiking up to 21.82 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
Although Canada Goose 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 four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Canada Goose. Out of 33 times, GOOS closed higher 60.61% 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 66.67% with an average market move of 3.05%.