GPN pushes through Tuesday's high
Global Payments Inc. (GPN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GPN finished Wednesday at 175.79 gaining $2.64 (1.52%) on low volume, strongly outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 175.49, Global Payments confirmed its breakout through the previous session high after trading up to $1.57 above it intraday.
Daily Candlestick Chart (GPN as at Sep 16, 2020):
Wednesday's trading range has been $3.03 (1.73%), that's below the last trading month's daily average range of $4.53. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GPN.
The stock managed to close back above the 200-day moving average at 174.43 for the first time since September 3rd. When this moving average was crossed above the last time on August 28th, GPN actually lost -0.37% on the following trading day. Prices are trading close to the key technical resistance level at 179.46 (R1).
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Global Payments. Out of 433 times, GPN closed higher 62.12% 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 61.66% with an average market move of 1.27%.