GPOR finds buyers around 1.36 for the third day in a row
Gulfport Energy Corporation (GPOR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
GPOR finished the week -5.56% lower at 1.53 after gaining $0.09 (6.25%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing above Thursday's high at 1.50, the share confirmed its breakout through the previous session high after trading up to $0.04 above it intraday.
Daily Candlestick Chart (GPOR as at May 22, 2020):
Friday's trading range has been $0.18 (12.68%), that's far below the last trading month's daily average range of $0.33. 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 GPOR.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Despite a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 1.47 (now S1), which is likely to act as support going forward. The last time this happened on April 24th, GPOR gained 14.72% on the following trading day. Gulfport Energy found buyers again today around 1.36 for the third trading day in a row after having found demand at 1.38 in the previous session and at 1.35 two days ago.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Gulfport Energy. Out of 234 times, GPOR closed higher 56.41% 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 five trading days, showing a win rate of 54.27% with an average market move of 0.67%.