TRI pushes through Thursday's high
Thomson Reuters Corp (TRI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
TRI finished the month 2.75% higher at 69.84 after gaining $0.27 (0.39%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $0.33 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 69.62, the share confirmed its breakout through the previous session high after trading up to $0.24 above it intraday.
Daily Candlestick Chart (TRI as at Jul 31, 2020):
Friday's trading range has been $0.84 (1.21%), that's below the last trading month's daily average range of $1.08. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TRI.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on May 15th, TRI gained 2.23% on the following trading day.
Prices are trading close to the key technical resistance level at 70.11 (R1).
Thomson Reuters shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 70.11 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 68.60 where further sell stops might get activated. Further buying could move prices higher should the market test June's close-by high at 71.37.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Thomson Reuters. Out of 440 times, TRI closed higher 52.05% 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 56.82% with an average market move of 0.52%.