TRMB closes within previous day's range after lackluster session
Trimble Inc. (TRMB) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
TRMB ended Monday at 40.07 gaining $0.95 (2.43%), notably outperforming the S&P 500 (0.38%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TRMB as at Jun 01, 2020):
Monday's trading range has been $1.42 (3.61%), that's below the last trading month's daily average range of $1.88. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for TRMB.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, Trimble managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 38.73 (S1). After having been unable to move lower than 38.75 in the prior session, the stock found buyers again around the same price level today at 38.88. The last time this happened on May 22nd, TRMB gained 4.81% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the nearby swing low at 38.75 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Trimble. Out of 30 times, TRMB closed lower 60.00% 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 three trading days, showing a win rate of 53.33% with an average market move of -0.22%.