TMUS closes within previous day's range
T-Mobile US Inc. (TMUS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, TMUS ended Thursday at 84.63 gaining $5.46 (6.9%) on low volume, strongly outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TMUS as at Mar 26, 2020):
Thursday's trading range has been $5.26 (6.57%), that's slightly below the last trading month's daily average range of $5.94. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for TMUS.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 200-day moving average at 80.13 for the first time since March 13th. When this moving average was crossed above the last time on March 13th, TMUS actually lost -10.38% on the following trading day. Prices are trading close to the key technical resistance level at 88.77 (R1). After having been unable to move above 85.47 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 84.99.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 85.47 where further buy stops might get triggered.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for T-Mobile US. Out of 32 times, TMUS closed higher 62.50% 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 three trading days, showing a win rate of 50.00% with an average market move of -0.25%.