GRMN closes higher for the 2nd day in a row
Garmin Ltd. (GRMN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GRMN ended the month 8.13% higher at 97.50 after gaining $1.35 (1.4%) today, slightly underperforming the S&P 500 (1.54%).
Daily Candlestick Chart (GRMN as at Jun 30, 2020):
Tuesday's trading range has been $1.84 (1.9%), that's below the last trading month's daily average range of $2.55. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for GRMN.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 5th, GRMN actually gained 2.87% on the following trading day.
After trading down to 96.18 earlier during the day, the market bounced off the key technical support level at 96.51 (S1). The failure to close below the support might increase that levels importance as support going forward.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to June's high at 99.34, upside momentum could accelerate should Garmin Ltd. mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Garmin Ltd.. Out of 411 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 56.45% with an average market move of 0.63%.