GRMN closes above its opening price after recovering from early selling pressure
Garmin Ltd. (GRMN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
GRMN ended the week 2.06% higher at 98.18 after edging lower $0.12 (-0.12%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.56 lower after the open, Garmin Ltd. managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 27th, GRMN gained 3.55% on the following trading day. 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 (GRMN as at Feb 14, 2020):
Friday's trading range has been $0.87 (0.89%), that's far below the last trading month's daily average range of $1.70. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GRMN.
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. Additionally, three candlestick patterns are matching today's price action, the Bearish Harami Cross Pattern and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
Prices are trading close to the key technical resistance level at 98.63 (R1). After having been unable to move above 98.50 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 98.45.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 99.00 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 96.94 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Cross Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Garmin Ltd.. Out of 5 times, GRMN closed higher 60.00% of the time on the next trading day after the market condition occurred.