TLRD closes below its opening price unable to hold early session gains
Tailored Brands Inc. (TLRD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
TLRD finished Thursday at 1.44 losing $0.17 (-10.56%) on high volume, notably underperforming the S&P 500 (6.24%). Trading $0.27 higher after the open, Tailored Brands was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Wednesday's low at 1.50, the market confirmed its breakout through the prior session low after trading up to $0.15 below it intraday.
Daily Candlestick Chart (TLRD as at Mar 26, 2020):
Thursday's trading range has been $0.51 (32.08%), that's above the last trading month's daily average range of $0.36. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TLRD.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on March 13th, TLRD lost -34.47% on the following trading day.
Prices are trading close to the key technical support level at 1.23 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 1.23 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Tailored Brands. Out of 137 times, TLRD closed higher 54.01% 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 54.74% with an average market move of 0.46%.