TRMB closes lower for the 2nd day in a row
Trimble Inc. (TRMB) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TRMB ended the week 11.1% higher at 39.33 after losing $0.05 (-0.13%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (TRMB as at May 22, 2020):
Friday's trading range has been $0.96 (2.44%), that's below the last trading month's daily average range of $1.78. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TRMB.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern, one bearish pattern, the Northern Doji and one neutral pattern, the Doji.
Prices are trading close to the key technical resistance level at 40.44 (R1). After having been unable to move lower than 38.91 in the prior session, the share found buyers again around the same price level today at 38.73. The last time this happened on May 12th, TRMB actually lost -3.18% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 40.87 where further buy stops might get activated. Trading close to March's high at 41.62 we could see further upside momentum if potential buy stops at the level get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Trimble. Out of 101 times, TRMB closed lower 51.49% 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 55.45% with an average market move of 0.41%.