TDG rallies, gaining $11.59 (2.28%) within a single day
Transdigm Group Incorporated Inc. (TDG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
TDG finished Wednesday at 518.89 surging $11.59 (2.28%), significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over two weeks. Today's close at 518.89 marks the highest recorded closing price since March 5th. Closing above Tuesday's high at 511.93, the stock confirmed its breakout through the prior session high after trading up to $14.30 above it intraday.
Daily Candlestick Chart (TDG as at Sep 16, 2020):
Wednesday's trading range has been $21.77 (4.28%), that's far above the last trading month's daily average range of $12.69. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TDG.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 513.23 (now S1), which is likely to act as support going forward. Transdigm Group found buyers again today around 504.46 for the third trading day in a row after having found demand at 504.34 in the previous session and at 502.00 two days ago.
Crossing above the upper Bollinger Band for the first time since August 12th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 497.84 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on August 4th, TDG gained 5.10% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Transdigm Group. Out of 124 times, TDG closed higher 54.84% 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 61.29% with an average market move of 0.92%.