TRI breaks below Tuesday's low
Thomson Reuters Corp (TRI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
TRI finished Wednesday at 77.73 losing $0.77 (-0.98%), underperforming the S&P 500 (-0.46%). Closing below Tuesday's low at 77.98, the stock confirmed its breakout through the prior session low after trading up to $0.29 below it intraday.
Daily Candlestick Chart (TRI as at Sep 16, 2020):
Wednesday's trading range has been $1.77 (2.24%), that's far above the last trading month's daily average range of $1.30. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TRI.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on July 23rd, TRI lost -1.37% on the following trading day. Regardless of a strong opening Thomson Reuters closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 77.51 (S1). Unable to break through the key technical resistance level at 79.31 (R1), the share closed below it after spiking up to 79.46 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Thomson Reuters. Out of 521 times, TRI closed higher 55.09% 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 56.24% with an average market move of 0.42%.