GT falls to lowest close since July 9th
The Goodyear Tire & Rubber Company (GT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GT finished the month 0.67% higher at 9.01 after tanking $0.70 (-7.21%) today on high volume, significantly underperforming the S&P 500 (0.77%) following today's earnings report. This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on June 11th, GT actually gained 10.05% on the following trading day. Today's close at 9.01 marks the lowest recorded closing price since July 9th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 9.65, the market confirmed its breakout through the previous session low after trading up to $0.66 below it intraday.
Daily Candlestick Chart (GT as at Jul 31, 2020):
GT reported earnings of $-1.87 per share before today's market open. With analysts having expected an EPS of $-2.09, The Goodyear Tire & Rubber Company topped market expectations by 10.5%. The company's last earnings report was released on April 30, 2020, when The Goodyear Tire & Rubber Company reported earnings of $-0.6 per share failing market expectations by -130.8%.
Friday's trading range has been $1.01 (10.26%), that's far above the last trading month's daily average range of $0.44. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GT.
One bearish candlestick pattern matches today's price action, the Black Candle.
The share closed below the 20-day moving average at 9.48 for the first time since July 9th. After having been unable to move above 10.04 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 10.00.
Though The Goodyear is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to July's low at 8.38, downside momentum might speed up should GT mark new lows for the month.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Its common bearish interpretation has been confirmed for The Goodyear. Out of 293 times, GT closed lower 56.31% 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 10 trading days, showing a win rate of 53.92% with an average market move of -0.21%.