GTT breaks back below 20-day moving average
GTT Communications Inc. (GTT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, GTT ended the week -5.0% lower at 12.72 after tanking $0.70 (-5.22%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 13.40, the stock confirmed its breakout through the prior session low after trading up to $1.15 below it intraday.
Daily Candlestick Chart (GTT as at Feb 14, 2020):
Friday's trading range has been $1.21 (8.99%), that's far above the last trading month's daily average range of $0.77. 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 GTT.
One bearish candlestick pattern matches today's price action, the Black Candle.
The share closed back below the 20-day moving average at 13.13 for the first time since February 3rd. When this moving average was crossed below the last time on January 31st, GTT actually gained 5.74% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to February's low at 11.79, downside momentum might speed up should the market mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for GTT Communications. Out of 121 times, GTT closed higher 56.20% 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 61.98% with an average market move of 3.48%.