GOOS finds buyers at key support level
Canada Goose Holdings Inc. Subordinate (GOOS) Technical Analysis Report for Sep 21, 2020 | by Techniquant Editorial Team
GOOS ended Monday at 28.19 tanking $1.08 (-3.69%), notably underperforming the S&P 500 (-1.16%). This is the biggest single-day loss in over a month. Closing below Friday's low at 28.52, Goose confirmed its breakout through the prior session low after trading up to $0.93 below it intraday.
Daily Candlestick Chart (GOOS as at Sep 21, 2020):
Monday's trading range has been $1.05 (3.67%), that's slightly above the last trading month's daily average range of $0.99. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GOOS.
One bearish candlestick pattern matches today's price action, the Evening Star.
After trading down to 27.59 earlier during the day, the market bounced off the key technical support level at 27.64 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on September 18th, GOOS actually lost -3.69% on the following trading day. Prices are trading close to the key technical resistance level at 28.80 (R1).
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 25.88.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Evening Star" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish 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 seven trading days, showing a win rate of 100.00% with an average market move of 2.09%.