TJX finds buyers again around 53.05
TJX Companies Inc. (TJX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
TJX ended the week 13.23% higher at 53.41 after losing $0.89 (-1.64%) today, strongly underperforming the S&P 500 (0.24%). Trading $1.00 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TJX as at May 22, 2020):
Friday's trading range has been $1.79 (3.32%), that's slightly below the last trading month's daily average range of $1.92. 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 slightly higher than usual for TJX.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
The share closed back below the 100-day moving average at 53.99. When this moving average was crossed below the last time on March 5th, TJX lost -1.70% on the following trading day. After having been unable to move lower than 52.74 in the prior session, the market found buyers again around the same price level today at 53.05.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 48.76.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 55.29 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for TJX Companies. Out of 392 times, TJX closed higher 56.38% 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 64.54% with an average market move of 0.82%.