GRMN finds buyers again around 97.18
Garmin Ltd. (GRMN) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
GRMN ended Thursday at 97.53 gaining $0.40 (0.41%), slightly underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Trading $0.73 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GRMN as at Jul 02, 2020):
Thursday's trading range has been $1.61 (1.64%), that's below the last trading month's daily average range of $2.39. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GRMN.
Prices are trading close to the key technical support level at 96.51 (S1). After having been unable to move lower than 97.04 in the prior session, the stock found buyers again around the same price level today at 97.18. The last time this happened on Monday, GRMN gained 1.40% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying might move prices higher should the market test June's nearby high at 99.34.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Garmin Ltd.. Out of 570 times, GRMN closed higher 54.74% 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 52.98% with an average market move of 0.63%.