TGNA closes above its opening price after recovering from early selling pressure
TEGNA Inc (TGNA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
TGNA finished the week 10.66% higher at 11.21 after gaining $0.23 (2.09%) today on low volume, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.19 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (TGNA as at May 22, 2020):
Friday's trading range has been $0.37 (3.34%), that's far below the last trading month's daily average range of $0.53. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TGNA. Prices continued to consolidate within a tight trading range between 10.53 and 11.39 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After having been unable to move lower than 10.80 in the previous session, the market found buyers again around the same price level today at 10.88. The last time this happened on Tuesday, TGNA gained 6.64% on the following trading day.
Although TEGNA 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 11.39 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 10.53 where further sell stops might get triggered. Further buying could move prices higher should the market test April's nearby high at 12.11.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for TEGNA. Out of 593 times, TGNA closed higher 51.26% 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 49.92% with an average market move of 0.45%.