LOPE runs into sellers around 95.69 for the third day in a row
Grand Canyon Education Inc. (LOPE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, LOPE finished the week -0.51% lower at 95.40 after gaining $0.35 (0.37%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LOPE as at May 22, 2020):
Friday's trading range has been $1.37 (1.44%), that's below the last trading month's daily average range of $3.58. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LOPE. Prices continued to consolidate within a tight trading range between 93.30 and 96.14 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns.
Prices are trading close to the key technical support level at 93.77 (S1). The share ran into sellers again today around 95.69 for the third trading day in a row after having found sellers at 96.14 in the prior session and at 96.00 two days ago. The last time this happened on March 23rd, LOPE actually gained 10.57% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 96.14 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 93.30 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for Grand Canyon. Out of 78 times, LOPE closed lower 51.28% 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 62.82% with an average market move of -0.34%.