GPI closes above its opening price after recovering from early selling pressure
Group 1 Automotive Inc. (GPI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GPI finished the week 4.25% higher at 98.54 after gaining $0.64 (0.65%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.57 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (GPI as at Feb 14, 2020):
Friday's trading range has been $1.19 (1.21%), that's below the last trading month's daily average range of $2.94. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GPI. Prices continued to consolidate within a tight trading range between 95.30 and 98.85 where it has been caught now for the last three trading days.
After spiking up to 98.85 during the day, the share found resistance at the 100-day moving average at 98.63. The last time this happened on Wednesday, GPI actually gained 2.05% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Group 1. Out of 431 times, GPI closed lower 51.74% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after three trading days, showing a win rate of 52.20% with an average market move of -0.01%.