TEN pops to highest close since January 21st
Tenneco Inc. Class A Voting (TEN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, TEN finished the week 7.06% higher at 10.47 after edging higher $0.04 (0.38%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 10.47 marks the highest recorded closing price since January 21st. Trading up to $0.18 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, TEN gained 5.88% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (TEN as at Feb 14, 2020):
Friday's trading range has been $0.31 (2.96%), that's far below the last trading month's daily average range of $0.54. 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 lower than usual for TEN.
Three candlestick patterns are matching today's price action, the Bearish Doji Star and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
Prices are trading close to the key technical resistance level at 10.64 (R1).
Though Tenneco is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 10.88 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Tenneco. Out of 136 times, TEN closed higher 52.94% 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 54.41% with an average market move of 0.73%.