GPN dominated by bulls lifting the market higher throughout the day
Global Payments Inc. (GPN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GPN finished the week 2.78% higher at 206.37 after surging $3.64 (1.8%) today, strongly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 206.37 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 204.42, Global Payments confirmed its breakout through the prior session high after trading up to $1.95 above it intraday.
Daily Candlestick Chart (GPN as at Feb 14, 2020):
Friday's trading range has been $3.10 (1.52%), that's slightly below the last trading month's daily average range of $3.70. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for GPN.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 205.37 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since January 17th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 200.35 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on January 16th, GPN gained 1.36% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Global Payments. Out of 339 times, GPN closed higher 55.75% 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 61.95% with an average market move of 0.83%.