GTT tumbles, losing $0.57 (-7.33%) within a single day
GTT Communications Inc. (GTT) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, GTT ended Monday at 7.21 tanking $0.57 (-7.33%), significantly underperforming the S&P 500 (-0.94%). This is the biggest single-day loss in over a month. Today's close at 7.21 marks the lowest recorded closing price since April 3rd. The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 7.63, GTT Communications confirmed its breakout through the prior session low after trading up to $0.46 below it intraday.
Daily Candlestick Chart (GTT as at Jul 13, 2020):
Monday's trading range has been $0.79 (10.15%), that's far above the last trading month's daily average range of $0.48. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GTT.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on July 1st, GTT actually gained 3.02% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After spiking up to 7.96 during the day, the share found resistance at the 20-day moving average at 7.92. The stock ran into sellers again today around 7.96 for the third trading day in a row after having found sellers at 7.92 in the previous session and at 7.98 two days ago.
Crossing below the lower Bollinger Band for the first time since May 29th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 7.92 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 15 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for GTT Communications. Out of 38 times, GTT closed higher 57.89% 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 63.16% with an average market move of 1.33%.