GT closes higher for the 3rd day in a row
The Goodyear Tire & Rubber Company (GT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GT ended Thursday at 6.19 edging higher $0.06 (0.98%), notably underperforming the S&P 500 (6.24%). Trading $0.47 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GT as at Mar 26, 2020):
Thursday's trading range has been $0.60 (9.65%), that's below the last trading month's daily average range of $0.75. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GT.
Four candlestick patterns are matching today's price action, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji. The last time a Gravestone Doji showed up on March 6th, GT lost -12.53% on the following trading day.
Prices are trading close to the key technical support level at 6.08 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for The Goodyear. Out of 421 times, GT closed higher 53.92% 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 51.07% with an average market move of 0.47%.