GRMN pushes through key technical resistance level
Garmin Ltd. (GRMN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GRMN finished Thursday at 74.23 gaining $2.52 (3.51%), strongly underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 73.79, the share confirmed its breakout through the previous session high after trading up to $1.12 above it intraday.
Daily Candlestick Chart (GRMN as at Mar 26, 2020):
Thursday's trading range has been $3.83 (5.31%), that's below the last trading month's daily average range of $4.71. 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 higher than usual for GRMN.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 72.38 (now S1), which is likely to act as support going forward. The last time this happened on March 17th, GRMN actually lost -3.00% on the following trading day.
Although the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Garmin Ltd.. Out of 79 times, GRMN closed higher 60.76% 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 62.03% with an average market move of 1.23%.