TRP finds buyers around 44.70 for the third day in a row
TransCanada Corporation (TRP) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
TRP ended the month 6.39% higher at 45.60 after edging higher $0.10 (0.22%) today on high volume, underperforming the S&P 500 (0.77%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (TRP as at Jul 31, 2020):
Friday's trading range has been $0.97 (2.12%), that's slightly above the last trading month's daily average range of $0.88. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TRP.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on December 27, 2019, TRP lost -2.06% on the following trading day.
After trading down to 44.70 earlier during the day, the share bounced off the key technical support level at 45.26 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 46.18 (R1). The stock found buyers again today around 44.70 for the third trading day in a row after having found demand at 44.77 in the previous session and at 44.72 two days ago.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 46.10 where further buy stops could get activated.
Among the nine 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 TransCanada. Out of 450 times, TRP closed higher 55.78% 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 57.56% with an average market move of 0.33%.