TEL dominated by bulls lifting the market higher throughout the day
TE Connectivity Ltd. New Switzerland Registered Shares (TEL) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TEL finished the week 5.56% higher at 78.46 after edging higher $0.34 (0.44%) today, slightly outperforming the S&P 500 (-0.01%). Today's close at 78.46 marks the highest recorded closing price since November 9, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 78.13, the market confirmed its breakout through the prior session high after trading up to $0.36 above it intraday.
Daily Candlestick Chart (TEL as at Jan 11, 2019):
Friday's trading range has been $1.08 (1.39%), that's far below the last trading month's daily average range of $1.97. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TEL.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on December 31, 2018, TEL actually lost -0.52% on the following trading day.
Prices are trading close to the key technical resistance level at 78.74 (R1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 74.20.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying could move prices higher should the market test December's nearby high at 78.74.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for TE Connectivity. Out of 78 times, TEL closed higher 60.26% 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 58.97% with an average market move of 0.65%.