GOOS breaks below key technical support level
Canada Goose Holdings Inc. Subordinate (GOOS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, GOOS finished the month -3.84% lower at 22.28 after losing $0.50 (-2.19%) today, significantly underperforming the S&P 500 (0.77%). Trading $0.34 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 22.31, the market confirmed its breakout through the previous session low after trading up to $0.15 below it intraday.
Daily Candlestick Chart (GOOS as at Jul 31, 2020):
Friday's trading range has been $0.79 (3.49%), that's slightly below the last trading month's daily average range of $0.88. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GOOS.
Prices broke below the key technical support level at 22.55 (now R1), which is likely to act as resistance going forward. The last time this happened on July 17th, GOOS lost -0.44% on the following trading day.
Although Goose is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to July's low at 21.38, downside momentum could accelerate should Canada Goose mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Canada Goose. Out of 131 times, GOOS closed higher 55.73% 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 58.78% with an average market move of 1.71%.