TECD closes higher for the 3rd day in a row
Tech Data Corporation (TECD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TECD ended Thursday at 133.90 gaining $6.69 (5.26%), underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 129.75, the stock confirmed its breakout through the previous session high after trading up to $4.80 above it intraday.
Daily Candlestick Chart (TECD as at Mar 26, 2020):
Thursday's trading range has been $7.88 (6.15%), that's slightly below the last trading month's daily average range of $8.16. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for TECD.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, TECD gained 4.05% on the following trading day.
Tech Data managed to close above the 20-day moving average at 129.08 for the first time since February 21st. Prices are trading close to the key technical resistance level at 134.86 (R1).
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the nearby swing high at 139.54 where further buy stops might get triggered. As prices are trading close to March's high at 143.49, upside momentum could accelerate should the market mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Tech Data. Out of 519 times, TECD closed higher 51.83% 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 57.80% with an average market move of 0.68%.