TMUS dominated by bears dragging the market lower throughout the day
T-Mobile US Inc. (TMUS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
TMUS ended Wednesday at 113.76 losing $2.17 (-1.87%) on high volume, slightly underperforming the Nasdaq 100 (-1.67%). 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.
Daily Candlestick Chart (TMUS as at Sep 16, 2020):
Wednesday's trading range has been $3.93 (3.38%), that's far above the last trading month's daily average range of $2.40. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TMUS.
Two candlestick patterns are matching today's price action, the Black Candle and the Dark Cloud Cover which are both known as bearish patterns. The last time a Dark Cloud Cover showed up on August 27th, TMUS actually gained 0.89% on the following trading day.
T-Mobile US closed back below the 20-day moving average at 114.78.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for T-Mobile US. Out of 298 times, TMUS closed higher 60.74% 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 60.74% with an average market move of 1.71%.