GTT pushes through Tuesday's high
GTT Communications Inc. (GTT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
GTT finished Wednesday at 6.38 surging $0.72 (12.72%), strongly outperforming the S&P 500 (-0.46%) ahead of Thursday's earnings report. Today's close at 6.38 marks the highest recorded closing price since July 30th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 5.87, GTT Communications confirmed its breakout through the previous session high after trading up to $0.82 above it intraday.
Daily Candlestick Chart (GTT as at Sep 16, 2020):
GTT is set to report earnings on Thursday. For the upcoming report, analysts expect the company to have earned $-0.47 per share. The company's last earnings report was released on May 8, 2020, when GTT Communications Inc. reported earnings of $-0.79 per share failing market expectations by -203.8%.
Wednesday's trading range has been $1.32 (24.4%), that's far above the last trading month's daily average range of $0.65. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GTT.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 50-day moving average at 5.92 for the first time since June 8th. When this moving average was crossed above the last time on June 8th, GTT actually lost -10.78% on the following trading day. Unable to break through the key technical resistance level at 6.55 (R1), the market closed below it after spiking up to 6.69 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. The stock found buyers again today around 5.37 for the third trading day in a row after having found demand at 5.50 in the prior session and at 5.39 two days ago.
Crossing above the upper Bollinger Band for the first time since September 9th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 5.26 or signal the beginning of a strong momentum breakout leading to even higher prices.
While GTT is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for GTT Communications. Out of 89 times, GTT closed higher 56.18% 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 52.81% with an average market move of 0.68%.