GSKY rises to highest close since June 10th
GreenSky Inc. (GSKY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, GSKY finished the month 15.1% higher at 5.64 after gaining $0.09 (1.62%) today, outperforming the S&P 500 (0.77%). Today's close at 5.64 marks the highest recorded closing price since June 10th. Trading up to $0.15 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 5.58, GreenSky confirmed its breakout through the prior session high after trading up to $0.07 above it intraday.
Daily Candlestick Chart (GSKY as at Jul 31, 2020):
Friday's trading range has been $0.26 (4.69%), that's slightly below the last trading month's daily average range of $0.29. 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 GSKY.
Buyers managed to take out the key technical resistance level at 5.58 (now S1), which is likely to act as support going forward. The last time this happened on July 16th, GSKY lost 0.00% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 5.65 where further buy stops could get triggered.
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 Resistance R1" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for GreenSky. Out of 28 times, GSKY closed lower 53.57% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 57.14% with an average market move of -0.89%.