GRMN closes within prior day's range after lackluster session
Garmin Ltd. (GRMN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
GRMN ended the week 7.51% higher at 83.89 after losing $0.31 (-0.37%) today, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GRMN as at May 22, 2020):
Friday's trading range has been $0.83 (0.99%), that's far below the last trading month's daily average range of $2.25. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GRMN.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on Tuesday, GRMN gained 2.22% on the following trading day.
Prices are trading close to the key technical resistance level at 84.78 (R1). After having been unable to move lower than 83.59 in the prior session, the stock found buyers again around the same price level today at 83.65.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 84.90 where further buy stops might get triggered. Further buying could move prices higher should the market test April's nearby high at 87.50.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Garmin Ltd.. Out of 810 times, GRMN closed higher 52.96% 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 55.80% with an average market move of 0.70%.