TDS breaks below Thursday's low
Telephone and Data Systems Inc. (TDS) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
TDS finished the week -2.88% lower at 29.31 after losing $0.41 (-1.38%) today, notably underperforming the S&P 500 (-0.16%). Closing below Thursday's low at 29.51, the market confirmed its breakout through the previous session low after trading up to $0.72 below it intraday.
Daily Candlestick Chart (TDS as at Jun 14, 2019):
Friday's trading range has been $0.77 (2.6%), that's above the last trading month's daily average range of $0.59. 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 TDS.
One bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on May 10th, TDS actually lost -3.97% on the following trading day.
Prices broke below the key technical support level at 29.34 (now R1), which is likely to act as resistance going forward.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 29.86 where further buy stops could get activated. With prices trading close to this year's low at 28.73, downside momentum might speed up should the stock break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for Telephone and Data. Out of 38 times, TDS closed higher 55.26% 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 60.53% with an average market move of 2.29%.