GWPH closes below its opening price unable to hold early session gains
GW Pharmaceuticals Plc (GWPH) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
GWPH ended Wednesday at 105.90 losing $1.23 (-1.15%), underperforming the S&P 500 (-0.46%). Trading $1.00 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 September 10th, GWPH actually gained 2.29% on the following trading day. Closing below Tuesday's low at 106.51, the share confirmed its breakout through the previous session low after trading up to $1.39 below it intraday.
Daily Candlestick Chart (GWPH as at Sep 16, 2020):
Wednesday's trading range has been $2.93 (2.74%), that's slightly below the last trading month's daily average range of $3.77. 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 strongly lower than usual for GWPH.
After trading down to 105.12 earlier during the day, GW Pharmaceuticals bounced off the key technical support level at 105.37 (S1). The failure to close below the support might increase that levels importance as support going forward.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Its common bearish interpretation has been confirmed for GW Pharmaceuticals. Out of 344 times, GWPH closed lower 55.52% 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 three trading days, showing a win rate of 53.78% with an average market move of 0.06%.