TCO still stuck within tight trading range
Taubman Centers Inc. (TCO) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
TCO finished the month 2.54% higher at 38.72 after gaining $0.54 (1.41%) today, outperforming the S&P 500 (0.77%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 38.42, the share confirmed its breakout through the prior session high after trading up to $0.33 above it intraday.
Daily Candlestick Chart (TCO as at Jul 31, 2020):
Friday's trading range has been $0.67 (1.75%), that's slightly above the last trading month's daily average range of $0.65. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TCO. Prices continued to consolidate within a tight trading range between 37.77 and 38.75 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
The market was bought again around 38.08 after having seen lows at 37.99, 38.01 and 38.07 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on July 1st, TCO actually lost -1.07% on the following trading day.
Although 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 close-by swing high at 38.75 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 37.99 where further sell stops could get triggered. As prices are trading close to July's high at 38.95, upside momentum might speed up should Taubman Centers mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous three Lows" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Taubman Centers. Out of 36 times, TCO closed lower 61.11% 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 six trading days, showing a win rate of 58.33% with an average market move of -0.29%.