TRGP finds support at 50-day moving average
Targa Resources Inc. (TRGP) Technical Analysis Report for Jul 17, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, TRGP ended Wednesday at 39.62 tanking $1.16 (-2.84%), notably underperforming the S&P 500 (-0.65%). This is the biggest single-day loss in over three weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 40.43, the stock confirmed its breakout through the prior session low after trading up to $0.85 below it intraday.
Daily Candlestick Chart (TRGP as at Jul 17, 2019):
Wednesday's trading range has been $1.28 (3.13%), that's far above the last trading month's daily average range of $0.91. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TRGP.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Monday, TRGP lost -0.95% on the following trading day.
After trading as low as 39.58 during the day, the share found support at the 50-day moving average at 39.61. The market closed back below the 100-day moving average at 40.08 for the first time since July 8th.
Although Targa Resources is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the nearby swing low at 39.50 where further sell stops might get triggered. As prices are trading close to July's low at 38.64, downside momentum could accelerate should TRGP mark new lows for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Targa Resources. Out of 43 times, TRGP closed higher 51.16% 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 67.44% with an average market move of 2.13%.