TEL closes lower for the 2nd day in a row
TE Connectivity Ltd. New Switzerland Registered Shares (TEL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TEL ended the week 0.06% higher at 93.28 after losing $1.26 (-1.33%) today on low volume, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 93.77, the stock confirmed its breakout through the previous session low after trading up to $1.02 below it intraday.
Daily Candlestick Chart (TEL as at Feb 14, 2020):
Friday's trading range has been $2.12 (2.24%), that's slightly above 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 way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TEL.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 92.75 earlier during the day, TE Connectivity bounced off the key technical support level at 92.98 (S1). The failure to close below the support could increase that levels importance as support going forward. The market closed back below the 100-day moving average at 93.85. The share was sold again around 94.87 after having seen highs at 94.99, 94.97 and 95.11 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on January 13th, TEL actually gained 2.45% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 94.99 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 91.96 where further sell stops could get triggered. With prices trading close to this year's low at 91.82, downside momentum might speed up should TEL break out to new lows for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for TE Connectivity. Out of 62 times, TEL closed higher 53.23% 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 62.90% with an average market move of 0.97%.