TJX closes above its opening price after recovering from early selling pressure
TJX Companies Inc. (TJX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
TJX ended the month -4.17% lower at 50.56 after edging lower $0.21 (-0.41%) today, strongly underperforming the S&P 500 (1.54%). Trading up to $0.55 lower after the open, the share 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 missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (TJX as at Jun 30, 2020):
Tuesday's trading range has been $1.03 (2.05%), that's far below the last trading month's daily average range of $1.81. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TJX.
One bullish candlestick pattern matches today's price action, the Hammer.
After having been unable to move above 50.77 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 50.80. The last time this happened on June 26th, TJX actually gained 2.48% on the following trading day.
TJX Companies shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 51.48 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 48.73 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for TJX Companies. Out of 696 times, TJX closed higher 53.45% 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 59.05% with an average market move of 0.68%.