TRIP closes below its opening price unable to hold early session gains
TripAdvisor Inc. (TRIP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, TRIP finished Thursday at 19.79 edging higher $0.03 (0.15%) on low volume, notably underperforming the S&P 500 (6.24%). Trading $0.82 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 20th, TRIP actually gained 7.64% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TRIP as at Mar 26, 2020):
Thursday's trading range has been $2.20 (10.77%), that's slightly above the last trading month's daily average range of $1.97. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TRIP.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 18.74 (S1).
Though the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for TripAdvisor. Out of 8 times, TRIP closed lower 62.50% 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 four trading days, showing a win rate of 50.00% with an average market move of -0.72%.