LOPE stuck within tight trading range
Grand Canyon Education Inc. (LOPE) Technical Analysis Report for Sep 13, 2019 | by Techniquant Editorial Team
LOPE ended the week -0.87% lower at 110.23 after gaining $0.16 (0.15%) today, slightly outperforming the S&P 500 (-0.07%). Trading up to $1.66 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, LOPE actually lost -4.24% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LOPE as at Sep 13, 2019):
Friday's trading range has been $3.25 (2.95%), that's slightly below the last trading month's daily average range of $4.24. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LOPE. Prices continued to consolidate within a tight trading range between 108.33 and 111.72 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 108.33 (S1). Prices are trading close to the key technical resistance level at 112.45 (R1). After having been unable to move lower than 108.33 in the previous session, the share found buyers again around the same price level today at 108.47.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 108.33 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Its common bullish interpretation has been confirmed for Grand Canyon. Out of 62 times, LOPE closed higher 56.45% 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 53.23% with an average market move of 0.88%.