LOPE closes within prior day's range after lackluster session
Grand Canyon Education Inc. (LOPE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
LOPE finished Wednesday at 86.14 gaining $0.36 (0.42%), outperforming the S&P 500 (-0.46%). 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 Sep 16, 2020):
Wednesday's trading range has been $1.84 (2.14%), that's below the last trading month's daily average range of $2.74. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LOPE. Prices continued to consolidate within a tight trading range between 85.10 and 87.76 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 84.43 (S1). After having been unable to move lower than 85.67 in the previous session, Grand Canyon found buyers again around the same price level today at 85.55. The last time this happened on September 9th, LOPE actually lost -1.28% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might accelerate should prices move above the close-by swing high at 87.76 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 84.43 where further sell stops could get triggered. Trading close to July's low at 83.82 we might see further downside momentum if potential sell stops at the level get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Grand Canyon. Out of 750 times, LOPE closed higher 52.00% 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 54.00% with an average market move of 0.88%.