TMK runs into sellers around 80.17 for the third day in a row
Torchmark Corporation (TMK) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, TMK ended the week 3.1% higher at 80.08 after edging higher $0.26 (0.33%) today on low volume, slightly outperforming the S&P 500 (-0.01%). Today's close at 80.08 marks the highest recorded closing price since December 7, 2018. Trading up to $0.43 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TMK as at Jan 11, 2019):
Friday's trading range has been $1.18 (1.49%), that's below the last trading month's daily average range of $1.85. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for TMK. Prices continued to consolidate within a tight trading range between 78.78 and 80.17 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on January 2nd, TMK actually lost -1.78% on the following trading day. Additionally, three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern.
After trading down to 78.99 earlier during the day, Torchmark bounced off the key technical support level at 79.37 (S1). The failure to close below the support could increase that levels importance as support going forward. The market ran into sellers again today around 80.17 for the third trading day in a row after having found sellers at 80.09 in the previous session and at 79.96 two days ago.
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the 11 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 Torchmark. Out of 484 times, TMK closed higher 58.68% 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 61.98% with an average market move of 0.93%.