TRP breaks back below 100-day moving average
TransCanada Corporation (TRP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, TRP ended Wednesday at 45.26 losing $0.20 (-0.44%), but still slightly outperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 45.35, the share confirmed its breakout through the prior session low after trading up to $0.16 below it intraday.
Daily Candlestick Chart (TRP as at Sep 16, 2020):
Wednesday's trading range has been $0.80 (1.75%), that's slightly below the last trading month's daily average range of $0.87. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TRP.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical support level at 45.12 (S1). The stock closed back below the 100-day moving average at 45.44 for the first time since September 8th. When this moving average was crossed below the last time on September 8th, TRP actually gained 2.80% on the following trading day.
TransCanada shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for TransCanada. Out of 67 times, TRP closed higher 58.21% 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 56.72% with an average market move of 0.34%.