TRHC closes below its opening price unable to hold early session gains
Tabula Rasa HealthCare Inc. (TRHC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
TRHC ended the week 3.86% higher at 64.38 after gaining $0.12 (0.19%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $1.12 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on January 16th, TRHC actually gained 6.90% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TRHC as at Feb 14, 2020):
Friday's trading range has been $1.85 (2.87%), that's below the last trading month's daily average range of $2.49. 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 TRHC.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 62.83 (S1). After having been unable to move above 65.43 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 65.61.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 62.83 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Tabula Rasa. Out of 231 times, TRHC closed higher 52.38% 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 58.87% with an average market move of 2.69%.