TDOC closes within prior day's range
Teladoc Health Inc. (TDOC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TDOC ended the month 24.52% higher at 237.63 after gaining $0.56 (0.24%) today, underperforming the S&P 500 (0.77%). Today's close at 237.63 marks the highest recorded closing price ever. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TDOC as at Jul 31, 2020):
Friday's trading range has been $9.99 (4.16%), that's slightly below the last trading month's daily average range of $11.41. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for TDOC.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After trading down to 230.01 earlier during the day, the share bounced off the key technical support level at 231.45 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 239.44 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 240.00. The last time this happened on Tuesday, TDOC actually gained 2.62% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 221.60.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Teladoc Health. Out of 47 times, TDOC closed higher 55.32% 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 65.96% with an average market move of 3.31%.