TECD closes below its opening price unable to hold early session gains
Tech Data Corporation (TECD) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
TECD finished Tuesday at 109.31 gaining $0.29 (0.27%) on low volume, slightly outperforming the S&P 500 (0.05%). Trading $0.49 higher after the open, Tech Data 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 in a lackluster session.
Daily Candlestick Chart (TECD as at Apr 16, 2019):
Tuesday's trading range has been $1.13 (1.03%), that's far below the last trading month's daily average range of $2.52. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TECD. Prices continued to consolidate within a tight trading range between 108.85 and 111.08 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
The market found buyers again today around 109.06 for the third trading day in a row after having found demand at 108.85 in the prior session and at 109.17 two days ago. The last time this happened on March 18th, TECD gained 0.45% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 111.08 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 108.85 where further sell stops could get triggered. Trading close to 2017's high at 111.10 we might see further upside momentum if potential buy stops at the level get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Tech Data. Out of 677 times, TECD closed higher 54.06% 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 61.00% with an average market move of 1.08%.