TMUS closes within previous day's range after lackluster session
T-Mobile US Inc. (TMUS) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
TMUS finished the week -1.56% lower at 95.80 after gaining $1.41 (1.49%) today, significantly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (TMUS as at May 22, 2020):
Friday's trading range has been $2.37 (2.51%), that's below the last trading month's daily average range of $3.01. 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 prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving lower in the previous session, the market managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Monday, TMUS actually lost -3.24% on the following trading day.
Prices are trading close to the key technical support level at 93.30 (S1).
Though T-Mobile US is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 93.00 where further sell stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for T-Mobile US. Out of 749 times, TMUS closed higher 53.67% 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 59.95% with an average market move of 1.13%.