GPS dominated by bears dragging the market lower throughout the day
Gap Inc. (GPS) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GPS finished the month 9.61% higher at 8.90 after losing $0.69 (-7.19%) today, notably underperforming the S&P 500 (0.48%). The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (GPS as at May 29, 2020):
Friday's trading range has been $0.64 (6.82%), that's slightly below the last trading month's daily average range of $0.73. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GPS.
One bearish candlestick pattern matches today's price action, the Black Candle.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Gap. Out of 549 times, GPS closed higher 52.64% 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 53.01% with an average market move of 0.24%.