TKR unable to break through key resistance level
Timken Company (TKR) Technical Analysis Report for Feb 20, 2020 | by Techniquant Editorial Team
TKR ended Thursday at 52.33 flat on high volume, slightly outperforming the S&P 500 (-0.38%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TKR as at Feb 20, 2020):
Thursday's trading range has been $1.61 (3.1%), that's slightly above the last trading month's daily average range of $1.54. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TKR.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 52.90 (R1), the share closed below it after spiking up to 53.06 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on February 6th, TKR lost -4.43% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Trading close to December's low at 50.94 we could see further downside momentum if potential sell stops at the level get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Timken. Out of 209 times, TKR closed higher 55.50% 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 62.68% with an average market move of 1.39%.