TRIP finds buyers around 20.88 for the forth day in a row
TripAdvisor Inc. (TRIP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
TRIP ended Wednesday at 21.32 gaining $0.28 (1.33%), significantly outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TRIP as at Sep 16, 2020):
Wednesday's trading range has been $0.86 (4.1%), that's slightly below the last trading month's daily average range of $0.89. Weekly volatility is also lower, being 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 20.88 and 21.74 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar.
After trading down to 20.88 earlier during the day, the stock bounced off the key technical support level at 20.96 (S1). The failure to close below the support might increase that levels importance as support going forward. The share was bought again around 20.88 after having seen lows at 20.96, 20.93 and 20.91 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on November 22, 2019, TRIP gained 2.14% on the following trading day.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Further selling might move prices lower should the market test August's nearby low at 19.80.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for TripAdvisor. Out of 363 times, TRIP closed higher 53.17% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.10% with an average market move of 0.89%.