TDG finds buyers again around 356.07
TransDigm Group (TDG) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
TDG ended the week -3.46% lower at 357.02 after losing $2.36 (-0.66%) today. Trading $1.28 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TDG as at Aug 10, 2018):
Friday's trading range was $3.47 (0.97%), that's far below last trading month's daily average range of $6.55. Things look different on a weekly scale, where volatility is way above the markets average with the monthly volatility being slightly below average. Prices continued to consolidate within a tight trading range between 355.46 and 362.94 which it has been in now for the last three days.
Breaking below the key support level at 358.05 today, it is now likely to act as resistance going forward. After having been unable to move lower than 356.83 in the previous session, the market found buyers again around the same price level today at 356.07.
While TransDigm Group is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Buying could speed up should prices move above the close-by swing high at 362.94 where further buy stops might get activated.