TRIP closes above its opening price after recovering from early selling pressure
TripAdvisor Inc. (TRIP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
TRIP ended the month -1.4% lower at 19.01 after edging lower $0.05 (-0.26%) today, strongly underperforming the S&P 500 (1.54%). Trading up to $0.26 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 22nd, TRIP gained 10.62% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TRIP as at Jun 30, 2020):
Tuesday's trading range has been $0.73 (3.9%), that's far below the last trading month's daily average range of $1.40. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TRIP. Prices continued to consolidate within a tight trading range between 17.84 and 19.65 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 18.74 (S1). After having been unable to move above 19.15 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 19.20.
TripAdvisor shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the close-by swing low at 17.84 where further sell stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Its common bearish interpretation has been confirmed for TripAdvisor. Out of 517 times, TRIP closed lower 51.45% 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 52.22% with an average market move of 0.07%.