TRP.TO pops to highest close since December 6, 2018
Transcanada Corp (TRP.TO) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 8th day in a row, TRP.TO ended the week 4.5% higher at 53.86 after edging higher $0.04 (0.07%) today, slightly underperforming the TSX 60 (0.19%). Today's close at 53.86 marks the highest recorded closing price since December 6, 2018. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TRP.TO as at Jan 11, 2019):
Friday's trading range has been $0.62 (1.15%), that's far below the last trading month's daily average range of $1.24. 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.TO.
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. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns.
After trading down to 53.33 earlier during the day, the stock bounced off the key technical support level at 53.83 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 54.01 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 53.95. The last time this happened on December 31, 2018, TRP.TO actually gained 3.41% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 54.01 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "8 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Transcanada Corp. Out of 2 times, TRP.TO closed lower 100.00% 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 two trading days, showing a win rate of 100.00% with an average market move of -1.09%.