GRMN dominated by bears dragging the market lower throughout the day
Garmin Ltd. (GRMN) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, GRMN ended Tuesday at 87.77 losing $0.89 (-1.0%), significantly underperforming the S&P 500 (0.05%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 88.13, Garmin Ltd. confirmed its breakout through the previous session low after trading up to $0.65 below it intraday.
Daily Candlestick Chart (GRMN as at Apr 16, 2019):
Tuesday's trading range has been $1.50 (1.69%), that's far above the last trading month's daily average range of $1.13. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GRMN.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on April 5th, GRMN actually gained 1.05% on the following trading day.
After having been unable to move above 89.09 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 88.98.
Though 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.
As prices are trading close to April's low at 86.66, downside momentum could speed up should the stock mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Garmin Ltd.. Out of 137 times, GRMN closed higher 54.01% 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 60.58% with an average market move of 1.32%.