TRP surges, gaining $0.74 (1.33%) within a single day
TransCanada Corporation (TRP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
TRP ended the week 2.32% higher at 56.35 after surging $0.74 (1.33%) today, significantly outperforming the S&P 500 (0.18%). This is the biggest single-day gain in over a month. Today's close at 56.35 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 55.77, the market confirmed its breakout through the prior session high after trading up to $0.61 above it intraday.
Daily Candlestick Chart (TRP as at Feb 14, 2020):
Friday's trading range has been $0.79 (1.42%), that's above the last trading month's daily average range of $0.65. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TRP.
One bullish candlestick pattern matches today's price action, the White Candle.
Crossing above the upper Bollinger Band for the first time since January 28th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 55.04 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on January 28th, TRP actually lost -0.27% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for TransCanada. Out of 303 times, TRP closed higher 53.47% 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 57.10% with an average market move of 0.18%.