TNDM pushes through key technical resistance level
Tandem Diabetes Care Inc. (TNDM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TNDM ended the month 18.97% higher at 98.92 after surging $11.11 (12.65%) today on high volume, notably outperforming the S&P 500 (1.54%). This is the biggest single-day gain in over a year. Today's close at 98.92 marks the highest recorded closing price since May 2, 2016. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 88.15, Tandem Diabetes confirmed its breakout through the prior session high after trading up to $11.17 above it intraday.
Daily Candlestick Chart (TNDM as at Jun 30, 2020):
Tuesday's trading range has been $12.32 (13.98%), that's far above the last trading month's daily average range of $4.64. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for TNDM.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 23rd, TNDM lost -4.77% on the following trading day.
Buyers managed to take out the key technical resistance level at 88.91 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since June 22nd, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 84.80 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 15 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. Its common bullish interpretation has been confirmed for Tandem Diabetes. Out of 69 times, TNDM closed higher 52.17% 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 60.87% with an average market move of 6.47%.