TRIP breaks below Thursday's low
TripAdvisor Inc. (TRIP) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TRIP finished the month -3.46% lower at 19.28 after losing $1.86 (-8.8%) today, significantly underperforming the S&P 500 (0.48%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 20.95, the market confirmed its breakout through the prior session low after trading up to $1.93 below it intraday.
Daily Candlestick Chart (TRIP as at May 29, 2020):
Friday's trading range has been $2.08 (9.9%), that's far above the last trading month's daily average range of $1.32. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for TRIP.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 18.74 (S1). Prices broke below the key technical support level at 20.93 (now R1), which is likely to act as resistance going forward. The last time this happened on May 1st, TRIP actually gained 1.91% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could speed up should prices move below the close-by swing low at 18.61 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for TripAdvisor. Out of 181 times, TRIP closed higher 55.25% of the time on the next trading day after the market condition occurred.