GRMN closes within prior day's range
Garmin Ltd. (GRMN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
GRMN finished the month 1.12% higher at 98.59 after losing $1.42 (-1.42%) today, notably underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GRMN as at Jul 31, 2020):
Friday's trading range has been $3.08 (3.08%), that's slightly above the last trading month's daily average range of $2.67. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GRMN.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on June 10th, GRMN actually lost -5.69% on the following trading day.
Prices are trading close to the key technical support level at 96.52 (S1). The market closed back below the 20-day moving average at 99.03. After having been unable to move lower than 97.09 in the prior session, the share found buyers again around the same price level today at 97.08.
While Garmin Ltd. is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Garmin Ltd.. Out of 159 times, GRMN closed higher 55.35% 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 55.97% with an average market move of 0.74%.