TRIP breaks back below 50-day moving average
TripAdvisor Inc. (TRIP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
TRIP ended the week 2.67% higher at 29.65 after edging higher $0.01 (0.03%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TRIP as at Feb 14, 2020):
Friday's trading range has been $0.88 (2.95%), that's slightly above the last trading month's daily average range of $0.85. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TRIP.
One bearish candlestick pattern matches today's price action, the Hanging Man.
The share closed back below the 50-day moving average at 29.67. When this moving average was crossed below the last time on January 24th, TRIP lost -2.69% on the following trading day. After having been unable to move lower than 29.02 in the previous session, the market found buyers again around the same price level today at 29.01.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for TripAdvisor. Out of 55 times, TRIP closed lower 54.55% 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 60.00% with an average market move of -2.64%.