TRIP closes lower for the 2nd day in a row
TripAdvisor Inc. (TRIP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TRIP finished the week 20.82% higher at 18.92 after losing $0.56 (-2.87%) today, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 18.98, TripAdvisor confirmed its breakout through the prior session low after trading up to $0.37 below it intraday.
Daily Candlestick Chart (TRIP as at May 22, 2020):
Friday's trading range has been $0.97 (4.95%), that's slightly below the last trading month's daily average range of $1.11. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TRIP.
Even with a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on April 14th, TRIP actually gained 6.24% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 18.61 earlier during the day, the market bounced off the key technical support level at 18.74 (S1). The failure to close below the support could increase that levels importance as support going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 20.06 where further buy stops could get activated. Further buying might move prices higher should the market test April's close-by high at 20.93.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for TripAdvisor. Out of 81 times, TRIP closed higher 60.49% of the time on the next trading day after the market condition occurred.