TNDM finds buyers again around 108.27

Tandem Diabetes Care Inc. (TNDM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team


TNDM breaks back below 20-day moving average
TNDM closes below its opening price unable to hold early session gains
TNDM finds buyers again around 108.27
TNDM closes within previous day's range


TNDM ended Wednesday at 108.41 losing $1.49 (-1.36%), underperforming the S&P 500 (-0.46%). Trading $3.99 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.

Daily Candlestick Chart (TNDM as at Sep 16, 2020):

Daily technical analysis candlestick chart for Tandem Diabetes Care Inc. (TNDM) as at Sep 16, 2020

Wednesday's trading range has been $6.09 (5.52%), that's far above the last trading month's daily average range of $4.52. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for TNDM.

One bearish candlestick pattern matches today's price action, the Dark Cloud Cover. The last time a Dark Cloud Cover showed up on July 8, 2019, TNDM actually gained 2.65% on the following trading day.

Prices are trading close to the key technical support level at 105.56 (S1). Tandem Diabetes closed back below the 20-day moving average at 109.41. After having been unable to move lower than 107.87 in the prior session, the share found buyers again around the same price level today at 108.27.

Though the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.

Selling could speed up should prices move below the nearby swing low at 104.07 where further sell stops might get triggered. With prices trading close to this year's high at 116.89, upside momentum could accelerate should TNDM be able to break out to new highs for the year. As prices are trading close to September's low at 103.35, downside momentum might speed up should the market mark new lows for the month.

Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dark Cloud Cover" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Tandem Diabetes. Out of 6 times, TNDM closed higher 83.33% 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 five trading days, showing a win rate of 83.33% with an average market move of 1.79%.

Market Conditions for TNDM as at Sep 16, 2020

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