TDOC runs into sellers around 198.87 for the third day in a row
Teladoc Health Inc. (TDOC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
TDOC finished Wednesday at 193.52 losing $1.19 (-0.61%), slightly underperforming the S&P 500 (-0.46%). Trading $3.87 higher after the open, the stock 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 missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TDOC as at Sep 16, 2020):
Wednesday's trading range has been $9.09 (4.66%), that's slightly below the last trading month's daily average range of $11.05. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TDOC. Prices continued to consolidate within a tight trading range between 189.78 and 198.87 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on September 2nd, TDOC lost -9.02% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 187.61 (S1). Teladoc Health ran into sellers again today around 198.87 for the third trading day in a row after having found sellers at 197.81 in the previous session and at 198.25 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 187.61 where further sell stops might get activated. As prices are trading close to September's low at 181.00, downside momentum could accelerate should the share mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Its common bearish interpretation has been confirmed for Teladoc Health. Out of 73 times, TDOC closed lower 58.90% 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 three trading days, showing a win rate of 57.53% with an average market move of -0.88%.