GPS closes within prior day's range after lackluster session

Gap Inc. (GPS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team


GPS dominated by bears dragging the market lower throughout the day
GPS closes within previous day's range after lackluster session


GPS ended Thursday at 8.45 losing $0.53 (-5.9%), significantly underperforming the S&P 500 (6.24%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.

Daily Candlestick Chart (GPS as at Mar 26, 2020):

Daily technical analysis candlestick chart for Gap Inc. (GPS) as at Mar 26, 2020

Thursday's trading range has been $0.91 (10.04%), that's below the last trading month's daily average range of $1.23. 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 GPS.

During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. In spite of a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Monday, GPS actually gained 29.46% on the following trading day.

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Gap. Out of 82 times, GPS closed higher 53.66% of the time on the next trading day after the market condition occurred.

Market Conditions for GPS as at Mar 26, 2020

Loading Market Conditions for GPS (Gap Inc.)...
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