THO closes within prior day's range
Thor Industries Inc. (THO) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
THO finished the week 6.68% higher at 86.66 after edging lower $0.22 (-0.25%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $1.74 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on February 6th, THO lost -2.20% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (THO as at Feb 14, 2020):
Friday's trading range has been $2.45 (2.82%), that's slightly above the last trading month's daily average range of $2.20. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for THO.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns.
Prices are trading close to the key technical support level at 84.94 (S1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 82.63.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Thor. Out of 53 times, THO closed higher 50.94% 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 60.38% with an average market move of 1.95%.