TREE climbs to highest close since August 12th
LendingTree Inc. (TREE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, TREE ended Wednesday at 318.73 edging higher $1.85 (0.58%), significantly outperforming the S&P 500 (-0.46%). Today's close at 318.73 marks the highest recorded closing price since August 12th. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TREE as at Sep 16, 2020):
Wednesday's trading range has been $10.42 (3.28%), that's slightly above the last trading month's daily average range of $10.12. 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 TREE.
One bearish candlestick pattern matches today's price action, the Shooting Star.
After spiking up to 327.66 during the day, the stock found resistance at the 50-day moving average at 321.81. The last time this happened on August 31st, TREE actually gained 1.06% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for LendingTree. Out of 93 times, TREE closed higher 56.99% 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 60.22% with an average market move of 3.24%.