GTLS closes below its opening price unable to hold early session gains
Chart Industries Inc. (GTLS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GTLS ended Wednesday at 70.51 edging higher $0.08 (0.11%), outperforming the S&P 500 (-0.46%). Trading $2.53 higher after the open, Chart was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GTLS as at Sep 16, 2020):
Wednesday's trading range has been $2.96 (4.19%), that's slightly below the last trading month's daily average range of $3.18. 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 lower than usual for GTLS.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns. The last time a Shooting Star showed up on July 13th, GTLS actually gained 3.40% on the following trading day.
Unable to break through the key technical resistance level at 70.83 (R1), the share closed below it after spiking up to 73.21 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Chart. Out of 212 times, GTLS closed higher 54.25% 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 three trading days, showing a win rate of 54.25% with an average market move of 0.07%.