GPC still stuck within tight trading range
Genuine Parts Company (GPC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
GPC finished the month 4.26% higher at 86.96 after edging lower $0.06 (-0.07%) today, notably underperforming the S&P 500 (1.54%). Trading up to $1.10 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GPC as at Jun 30, 2020):
Tuesday's trading range has been $1.84 (2.12%), that's far below the last trading month's daily average range of $2.95. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GPC. Prices continued to consolidate within a tight trading range between 83.29 and 87.59 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical resistance level at 87.90 (R1). After having been unable to move above 87.34 in the prior session, Genuine Parts ran into sellers again around the same price level today, failing to move higher than 87.44. The last time this happened on June 26th, GPC actually gained 4.02% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 89.43 where further buy stops could get activated. As prices are trading close to June's low at 82.06, downside momentum might accelerate should the market mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Genuine Parts. Out of 213 times, GPC closed higher 50.70% 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 56.81% with an average market move of 0.55%.