TEN dominated by bears dragging the market lower throughout the day
Tenneco Inc. Class A Voting (TEN) Technical Analysis Report for Mar 14, 2019 | by Techniquant Editorial Team
TEN ended Thursday at 28.10 tanking $5.09 (-15.34%) on high volume, notably underperforming the S&P 500 (-0.09%) following today's earnings report. This is the biggest single-day loss in over a year. The last time we've seen such an unusually strong single-day loss on February 7th, TEN lost -3.45% on the following trading day. Today's close at 28.10 marks the lowest recorded closing price since January 4th. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (TEN as at Mar 14, 2019):
TEN reported earnings of $1.3 per share today. With analysts having expected an EPS of $1.44, Tenneco Inc. Class A Voting missed market expectations by -9.7%. The company's last earnings report was released on Oct. 26, 2018, when Tenneco Inc. Class A Voting reported earnings of $1.7 per share surpassing market expectations by 14.1%.
Thursday's trading range has been $4.15 (12.99%), that's far above the last trading month's daily average range of $1.09. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for TEN.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 27.45 (S1). Tenneco closed back below the 100-day moving average at 32.60 for the first time since March 8th.
Crossing below the lower Bollinger Band for the first time since December 13, 2018, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 34.32 or signal the beginning of a strong momentum breakout leading to even lower prices.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
With prices trading close to this year's low at 26.22, downside momentum could speed up should the stock break out to new lows for the year.
Among the 15 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post weak Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Tenneco. Out of 4 times, TEN closed higher 75.00% 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 75.00% with an average market move of 2.31%.