GT finds buyers at key support level
The Goodyear Tire & Rubber Company (GT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
GT ended the month 17.48% higher at 8.94 after edging lower $0.08 (-0.89%) today, significantly underperforming the S&P 500 (1.54%). Trading up to $0.22 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GT as at Jun 30, 2020):
Tuesday's trading range has been $0.35 (3.92%), that's below the last trading month's daily average range of $0.49. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GT.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
After trading down to 8.71 earlier during the day, the market bounced off the key technical support level at 8.79 (S1). The failure to close below the support could increase that levels importance as support going forward. The Goodyear closed back below the 20-day moving average at 8.99. After having been unable to move above 9.04 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 9.06. The last time this happened on June 26th, GT actually gained 11.77% on the following trading day.
GT shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for The Goodyear. Out of 455 times, GT closed higher 56.70% 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 four trading days, showing a win rate of 53.85% with an average market move of 0.25%.