HEAR stuck within tight trading range
Turtle Beach Corporation (HEAR) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
HEAR finished Tuesday at 12.11 edging higher $0.12 (1.0%) on low volume, outperforming the S&P 500 (0.05%). Trading up to $0.15 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HEAR as at Apr 16, 2019):
Tuesday's trading range has been $0.45 (3.73%), that's below the last trading month's daily average range of $0.62. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HEAR. Prices continued to consolidate within a tight trading range between 11.75 and 12.36 where it has been caught now for the last three trading days.
After moving lower in the prior session, the stock managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Spinning Top showed up on March 25th, HEAR actually lost -5.38% on the following trading day.
Prices are trading close to the key technical support level at 11.79 (S1). After having been unable to move lower than 11.86 in the prior session, the market found buyers again around the same price level today at 11.91.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 12.65 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 11.71 where further sell stops might get activated. With prices trading close to this year's low at 10.58, downside momentum could speed up should Turtle Beach break out to new lows for the year. As prices are trading close to April's high at 12.76, upside momentum might accelerate should HEAR mark new highs for the month. As prices are trading close to April's low at 11.22, downside momentum could speed up should the share mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Turtle Beach. Out of 123 times, HEAR closed lower 56.10% 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 10 trading days, showing a win rate of 57.72% with an average market move of 0.18%.