TLRD runs into sellers again around 4.09
Tailored Brands Inc. (TLRD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
TLRD ended the week 1.03% higher at 3.94 after losing $0.14 (-3.43%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 3.98, Tailored Brands confirmed its breakout through the previous session low after trading up to $0.05 below it intraday.
Daily Candlestick Chart (TLRD as at Feb 14, 2020):
Friday's trading range has been $0.16 (3.91%), that's slightly below the last trading month's daily average range of $0.19. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TLRD.
Despite a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on January 8th, TLRD lost -4.21% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move above 4.10 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 4.09.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 4.10 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 3.75 where further sell stops could get triggered. 2019's low at 3.70 is within reach and we might see further downside momentum should the market break out beyond.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Tailored Brands. Out of 84 times, TLRD closed higher 57.14% 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 nine trading days, showing a win rate of 59.52% with an average market move of 1.02%.