TRGP stuck within tight trading range
Targa Resources Inc. (TRGP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
TRGP ended the week -1.05% lower at 36.89 after gaining $0.38 (1.04%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.34 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TRGP as at Feb 14, 2020):
Friday's trading range has been $0.58 (1.58%), that's below the last trading month's daily average range of $0.90. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TRGP. Prices continued to consolidate within a tight trading range between 36.27 and 37.33 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns.
Prices are trading close to the key technical support level at 36.27 (S1). Prices are trading close to the key technical resistance level at 37.33 (R1). The market found buyers again today around 36.44 for the third trading day in a row after having found demand at 36.27 in the prior session and at 36.42 two days ago. The last time this happened on December 2, 2019, TRGP actually lost -1.62% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 37.33 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 36.27 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Targa Resources. Out of 56 times, TRGP closed higher 62.50% 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 62.50% with an average market move of 1.91%.