TDC dominated by bulls lifting the market higher throughout the day
Teradata Corporation (TDC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
TDC finished the week -0.9% lower at 23.20 after gaining $0.21 (0.91%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TDC as at Feb 14, 2020):
Friday's trading range has been $0.50 (2.19%), that's below the last trading month's daily average range of $0.95. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for TDC. Prices continued to consolidate within a tight trading range between 22.81 and 24.01 where it has been caught now for the whole last trading week.
Notwithstanding a weak opening Teradata managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Wednesday, TDC actually lost -1.58% on the following trading day.
Prices are trading close to the key technical resistance level at 23.77 (R1). The stock ran into sellers again today around 23.31 for the third trading day in a row after having found sellers at 23.44 in the prior session and at 23.42 two days ago.
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 nearby swing high at 23.44 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Teradata. Out of 52 times, TDC closed higher 55.77% 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 65.38% with an average market move of 3.17%.