TRGP enters Golden Cross for the first time since November 27, 2019
Targa Resources Inc. (TRGP) Technical Analysis Report for Feb 20, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TRGP ended Thursday at 39.45 surging $2.50 (6.77%) on high volume, significantly outperforming the S&P 500 (-0.38%) ahead of Friday's earnings report. This is the biggest single-day gain in over five months. Today's close at 39.45 marks the highest recorded closing price since January 21st. Trading $0.46 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (TRGP as at Feb 20, 2020):
TRGP is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $-0.05 per share. The company's last earnings report was released on Nov. 7, 2019, when Targa Resources Inc. reported earnings of $-0.34 per share failing market expectations by -54.5%.
Thursday's trading range has been $1.28 (3.22%), that's far above the last trading month's daily average range of $0.89. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TRGP.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Targa Resources managed to close above the 200-day moving average at 38.69 for the first time since January 23rd. When this moving average was crossed above the last time on December 19, 2019, TRGP gained 1.40% on the following trading day. Prices are trading close to the key technical resistance level at 40.31 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already. With its 50-day moving average crossing above its 200-day moving average, the stock has entered a so-called "Golden Cross" for the first time since November 27, 2019. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Golden Cross" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Targa Resources. Out of 4 times, TRGP closed lower 75.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.00% with an average market move of -2.98%.