TAL closes within prior day's range after lackluster session
TAL Education Group American Depositary Shares (TAL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TAL ended Thursday at 55.73 edging higher $0.12 (0.22%) on low volume, notably underperforming the S&P 500 (6.24%). Trading up to $1.00 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 (TAL as at Mar 26, 2020):
Thursday's trading range has been $2.10 (3.82%), that's far below the last trading month's daily average range of $3.17. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for TAL.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After trading down to 54.00 earlier during the day, TAL Education bounced off the key technical support level at 54.41 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Monday, TAL gained 12.68% on the following trading day. Prices are trading close to the key technical resistance level at 57.21 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 57.21 where further buy stops could get activated. With prices trading close to this year's high at 59.76, upside momentum might accelerate should the market be able to break out to new highs for the year. As prices are trading close to March's high at 59.50, upside momentum could speed up should the stock mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for TAL Education. Out of 384 times, TAL closed higher 53.91% 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 62.50% with an average market move of 2.38%.