TRP finds buyers at key support level
TransCanada Corporation (TRP) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TRP ended Monday at 41.47 losing $0.71 (-1.68%), but still slightly outperforming the S&P 500 (-1.86%). 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 Oct 26, 2020):
Monday's trading range has been $0.91 (2.18%), that's slightly below the last trading month's daily average range of $1.00. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TRP.
After trading down to 40.98 earlier during the day, the stock bounced off the key technical support level at 41.05 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on October 23rd, TRP actually lost -1.68% on the following trading day. Prices are trading close to the key technical resistance level at 42.06 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to October's low at 40.92, downside momentum could speed up should the share mark new lows for the month.
Among the four 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 436 times, TRP closed higher 55.73% 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 57.11% with an average market move of 0.30%.