GRMN falls to lowest close since July 24th
Garmin Ltd. (GRMN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
GRMN finished Wednesday at 98.39 losing $1.59 (-1.59%), significantly underperforming the S&P 500 (-0.46%). Today's close at 98.39 marks the lowest recorded closing price since July 24th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 99.83, the market confirmed its breakout through the prior session low after trading up to $1.62 below it intraday.
Daily Candlestick Chart (GRMN as at Sep 16, 2020):
Wednesday's trading range has been $2.30 (2.3%), that's slightly above the last trading month's daily average range of $1.87. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GRMN.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 10th, GRMN actually gained 0.65% on the following trading day.
Prices broke below the key technical support level at 98.95 (now R1), which is likely to act as resistance going forward.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Garmin Ltd.. Out of 265 times, GRMN closed higher 52.83% 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 57.36% with an average market move of 0.76%.