GWPH snaps to lowest close since May 1st
GW Pharmaceuticals Plc (GWPH) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, GWPH finished Tuesday at 166.24 losing $1.42 (-0.85%), underperforming the S&P 500 (-0.34%). Today's close at 166.24 marks the lowest recorded closing price since May 1st. Closing below Monday's low at 166.96, the share confirmed its breakout through the previous session low after trading up to $1.46 below it intraday.
Daily Candlestick Chart (GWPH as at Jul 16, 2019):
Tuesday's trading range has been $3.22 (1.91%), that's far below the last trading month's daily average range of $4.90. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GWPH.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on July 2nd, GWPH actually gained 2.89% on the following trading day.
Prices are trading close to the key technical support level at 162.60 (S1). Prices are trading close to the key technical resistance level at 167.91 (R1).
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 172.62.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Trading close to May's low at 163.19 we could see further downside momentum if potential sell stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Its common bearish interpretation has been confirmed for GW Pharmaceuticals. Out of 363 times, GWPH closed lower 53.44% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after six trading days, showing a win rate of 54.55% with an average market move of 0.20%.