TMUS breaks below 20-day moving average for the first time since May 6th
T-Mobile US Inc. (TMUS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
TMUS finished the month 4.11% higher at 104.15 after losing $1.81 (-1.71%) today, strongly underperforming the Nasdaq 100 (1.96%). The bears were in full control today, moving the market lower throughout the whole session. 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 (TMUS as at Jun 30, 2020):
Tuesday's trading range has been $2.20 (2.08%), that's below the last trading month's daily average range of $3.49. 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 slightly lower 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, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
T-Mobile US closed below the 20-day moving average at 104.52 for the first time since May 6th. When this moving average was crossed below the last time on May 6th, TMUS actually gained 10.05% on the following trading day. After having been unable to move lower than 103.95 in the prior session, the stock found buyers again around the same price level today at 104.00.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 103.95 where further sell stops might get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for T-Mobile US. Out of 296 times, TMUS closed higher 59.46% 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 60.47% with an average market move of 1.75%.