TDS breaks back below 20-day moving average
Telephone and Data Systems Inc. (TDS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TDS ended the week -0.04% lower at 24.06 after losing $0.26 (-1.07%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 24.26, the stock confirmed its breakout through the prior session low after trading up to $0.38 below it intraday.
Daily Candlestick Chart (TDS as at Feb 14, 2020):
Friday's trading range has been $0.46 (1.89%), that's slightly below the last trading month's daily average range of $0.51. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TDS.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 23.86 (S1). The share closed back below the 20-day moving average at 24.19. When this moving average was crossed below the last time on January 24th, TDS lost -2.99% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the close-by swing low at 23.56 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Telephone and Data. Out of 140 times, TDS closed higher 55.00% 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 59.29% with an average market move of 0.49%.