GPS closes lower for the 2nd day in a row
Gap Inc. (GPS) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GPS finished Thursday at 15.36 tanking $1.17 (-7.08%) on high volume, notably underperforming the S&P 500 (0.25%). Today's close at 15.36 marks the lowest recorded closing price since July 13, 2009. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 16.52, the stock confirmed its breakout through the previous session low after trading up to $1.30 below it intraday.
Daily Candlestick Chart (GPS as at Aug 15, 2019):
Thursday's trading range has been $1.42 (8.55%), that's far above the last trading month's daily average range of $0.72. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for GPS.
One bearish candlestick pattern matches today's price action, the Black Candle.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 18.28.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) below 30" stand out. Its common bullish interpretation has been confirmed for Gap. Out of 32 times, GPS closed higher 62.50% 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 50.00% with an average market move of 0.34%.