LOPE breaks above 20-day moving average for the first time since March 6th
Grand Canyon Education Inc. (LOPE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, LOPE ended Thursday at 72.54 gaining $4.04 (5.9%), slightly underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 70.77, the market confirmed its breakout through the prior session high after trading up to $2.68 above it intraday.
Daily Candlestick Chart (LOPE as at Mar 26, 2020):
Thursday's trading range has been $4.45 (6.43%), that's slightly below the last trading month's daily average range of $4.69. 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 higher than usual for LOPE.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close above the 20-day moving average at 72.50 for the first time since March 6th. When this moving average was crossed above the last time on March 6th, LOPE actually lost -6.95% on the following trading day. Prices are trading close to the key technical resistance level at 76.23 (R1).
While the share 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 six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Grand Canyon. Out of 486 times, LOPE closed higher 52.47% 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 54.53% with an average market move of 0.71%.