TDS finds support at 100-day moving average
Telephone and Data Systems Inc. (TDS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
TDS finished the month -2.31% lower at 19.42 after gaining $0.14 (0.73%) today on high volume, slightly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TDS as at Jul 31, 2020):
Friday's trading range has been $0.53 (2.72%), that's slightly above the last trading month's daily average range of $0.53. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below 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 Takuri Line.
After trading as low as 18.92 during the day, the share found support at the 100-day moving average at 18.93.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 19.81. The last time this happened on March 10th, TDS actually lost -6.51% on the following trading day.
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 20.03 where further buy stops could get activated. Further selling might move prices lower should the market test June's nearby low at 18.53.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Telephone and Data. Out of 67 times, TDS closed lower 55.22% 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 six trading days, showing a win rate of 59.70% with an average market move of -0.46%.