GPN closes above its opening price after recovering from early selling pressure
Global Payments Inc. (GPN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
GPN ended the week 4.05% higher at 176.75 after edging higher $0.34 (0.19%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.35 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, GPN gained 3.38% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GPN as at May 22, 2020):
Friday's trading range has been $2.99 (1.7%), that's far below the last trading month's daily average range of $5.52. 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 GPN.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After having been unable to move lower than 175.85 in the previous session, the market found buyers again around the same price level today at 175.03.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three 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 Global Payments. Out of 219 times, GPN closed higher 56.62% 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 60.27% with an average market move of 0.72%.