GT climbs to highest close since February 7th
The Goodyear Tire & Rubber Company (GT) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GT finished Tuesday at 20.10 gaining $0.17 (0.85%), outperforming the S&P 500 (0.05%). Today's close at 20.10 marks the highest recorded closing price since February 7th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 20.05, the market confirmed its breakout through the previous session high after trading up to $0.09 above it intraday.
Daily Candlestick Chart (GT as at Apr 16, 2019):
Tuesday's trading range has been $0.23 (1.15%), that's far below the last trading month's daily average range of $0.44. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GT.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Short Candle showed up on March 29th, GT gained 2.92% on the following trading day.
The stock managed to close above the 100-day moving average at 20.04 for the first time since December 4, 2018. Prices are trading close to the key technical resistance level at 20.30 (R1).
While The Goodyear is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 20.21 where further buy stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for The Goodyear. Out of 283 times, GT closed higher 51.94% 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 57.60% with an average market move of 1.88%.