GPC closes below its opening price unable to hold early session gains
Genuine Parts Company (GPC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GPC ended the month 3.67% higher at 90.15 after losing $0.33 (-0.36%) today on high volume, significantly underperforming the S&P 500 (0.77%). Trading $1.01 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GPC as at Jul 31, 2020):
Friday's trading range has been $2.33 (2.57%), that's slightly above the last trading month's daily average range of $2.07. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GPC.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Regardless of a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on July 17th, GPC lost -0.94% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 92.28 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 87.89 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Genuine Parts. Out of 101 times, GPC closed higher 57.43% of the time on the next trading day after the market condition occurred.