TJX breaks back above 20-day moving average
TJX Companies Inc. (TJX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
TJX ended the month 2.83% higher at 51.99 after gaining $0.39 (0.76%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $0.62 lower after the open, TJX Companies 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.
Daily Candlestick Chart (TJX as at Jul 31, 2020):
Friday's trading range has been $1.12 (2.17%), that's slightly below the last trading month's daily average range of $1.26. 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. Prices continued to consolidate within a tight trading range between 50.92 and 52.98 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on June 4th, TJX gained 4.43% on the following trading day. Despite a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
The share managed to close back above the 20-day moving average at 51.96. After having been unable to move lower than 51.02 in the previous session, the stock found buyers again around the same price level today at 50.92.
TJX shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 52.98 where further buy stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for TJX Companies. Out of 459 times, TJX closed higher 59.26% 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 59.69% with an average market move of 0.79%.