GSK dominated by bears dragging the market lower throughout the day
GlaxoSmithKline PLC (GSK) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
GSK ended the month -1.15% lower at 40.32 after edging higher $0.07 (0.17%) today on high volume, underperforming the S&P 500 (0.77%). The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (GSK as at Jul 31, 2020):
Friday's trading range has been $0.99 (2.41%), that's far above the last trading month's daily average range of $0.65. 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 GSK.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on July 23rd, GSK lost -0.02% on the following trading day.
Prices are trading close to the key technical support level at 39.81 (S1). Prices are trading close to the key technical resistance level at 40.63 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 39.62 where further sell stops might get triggered. As prices are trading close to July's low at 39.35, downside momentum could speed up should the stock mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for GlaxoSmithKline PLC. Out of 276 times, GSK closed higher 51.81% 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 57.61% with an average market move of 0.68%.