GPN pops to highest close since June 18th
Global Payments Inc. (GPN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
GPN finished the month 4.95% higher at 178.02 after gaining $1.94 (1.1%) today on high volume, slightly outperforming the S&P 500 (0.77%) ahead of Monday's earnings report. Today's close at 178.02 marks the highest recorded closing price since June 18th. Trading up to $3.58 lower after the open, the market 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 (GPN as at Jul 31, 2020):
GPN is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $1.14 per share. The company's last earnings report was released on May 6, 2020, when Global Payments Inc. reported earnings of $1.58 per share topping market expectations by 3.9%.
Friday's trading range has been $4.61 (2.6%), that's slightly below the last trading month's daily average range of $4.72. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GPN.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on May 27th, GPN actually gained 0.11% on the following trading day.
Prices are trading close to the key technical resistance level at 179.46 (R1).
Though Global Payments is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day before Earnings Report" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Global Payments. Out of 34 times, GPN closed higher 61.76% 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 64.71% with an average market move of 2.95%.