Garmin Ltd. (GRMN) is a Swiss-based technology company that specializes in GPS technology, wearable technology, and outdoor and marine products. Recently, GRMN’s Average Directional Index (ADX) indicator crossed below the ADXR (Average Directional Index Rating).
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This is a technical indicator that measures the strength of a trend and is used to determine whether a trend is strengthening or weakening. This particular crossover has occurred 13 times before in GRMN’s stock price.
Historically, when the ADX crossed below the ADXR, the stock price decreased in the next 30 days 70% of the time. The median price movement in these cases was $-1.7. In the next 90 days though, the stock price increased 61% of the time, with a median price movement of $12.81.
These figures suggest that investors should be cautious when investing in GRMN after an ADX crossover. While the stock price has historically increased in the long-term, investors should be aware of the potential for short-term losses.