GPC closes higher for the 3rd day in a row
Genuine Parts Company (GPC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GPC ended Thursday at 68.64 gaining $3.86 (5.96%), slightly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GPC as at Mar 26, 2020):
Thursday's trading range has been $5.77 (8.87%), that's slightly above the last trading month's daily average range of $5.73. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for GPC.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 70.00 (R1). After having been unable to move above 68.78 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 69.26. The last time this happened on March 20th, GPC lost -9.14% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Genuine Parts. Out of 171 times, GPC closed higher 50.88% 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 59.06% with an average market move of 0.51%.