TEL closes lower for the 2nd day in a row
TE Connectivity Ltd. New Switzerland Registered Shares (TEL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TEL finished the week 8.84% higher at 76.23 after edging lower $0.06 (-0.08%) today, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TEL as at May 22, 2020):
Friday's trading range has been $1.78 (2.33%), that's below the last trading month's daily average range of $2.71. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for TEL.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on April 21st, TEL actually gained 4.23% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 79.37 where further buy stops might get activated. Further buying could move prices higher should the market test April's nearby high at 79.83.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for TE Connectivity. Out of 197 times, TEL closed higher 53.30% 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 56.85% with an average market move of 0.62%.