GTT closes below its opening price unable to hold early session gains
GTT Communications Inc. (GTT) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
GTT finished Wednesday at 5.89 losing $0.10 (-1.67%), significantly underperforming the S&P 500 (0.64%). Trading $0.17 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on July 31st, GTT lost -7.62% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GTT as at Aug 05, 2020):
Wednesday's trading range has been $0.43 (7.08%), that's slightly below the last trading month's daily average range of $0.45. 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 higher than usual for GTT.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 5.47 where further sell stops could get triggered. With prices trading close to this year's low at 5.07, downside momentum might accelerate should the share break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for GTT Communications. Out of 453 times, GTT closed higher 51.43% 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 58.06% with an average market move of 3.28%.