GRMN pushes through key technical resistance level
Garmin Ltd. (GRMN) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
GRMN ended Wednesday at 102.36 surging $2.42 (2.42%), significantly outperforming the S&P 500 (0.64%). Today's close at 102.36 marks the highest recorded closing price since February 19th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (GRMN as at Aug 05, 2020):
Wednesday's trading range has been $2.49 (2.48%), that's slightly below the last trading month's daily average range of $2.69. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GRMN.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 100.71 (now S1), which is likely to act as support going forward. The last time this happened on July 14th, GRMN gained 1.65% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 105.58, upside momentum might speed up should the stock be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Garmin Ltd.. Out of 539 times, GRMN closed higher 52.13% 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 55.66% with an average market move of 0.53%.