GPC finds buyers around 95.68 for the third day in a row
Genuine Parts Company (GPC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
GPC ended the week 1.14% higher at 96.47 after losing $0.49 (-0.51%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GPC as at Feb 14, 2020):
Friday's trading range has been $1.30 (1.34%), that's below the last trading month's daily average range of $1.68. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GPC. Prices continued to consolidate within a tight trading range between 94.43 and 96.98 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Dark Cloud Cover. The last time a Dark Cloud Cover showed up on January 2nd, GPC lost -1.42% on the following trading day.
After trading down to 95.68 earlier during the day, the market bounced off the key technical support level at 95.68 (S1). The failure to close below the support might increase that levels importance as support going forward. The share found buyers again today around 95.68 for the third trading day in a row after having found demand at 95.69 in the previous session and at 95.71 two days ago.
Although Genuine Parts is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's low at 93.47, downside momentum might speed up should the stock break out to new lows for the year. As prices are trading close to February's low at 93.88, downside momentum could accelerate should GPC mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dark Cloud Cover" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Genuine Parts. Out of 11 times, GPC closed higher 63.64% of the time on the next trading day after the market condition occurred.