TRXC finds buyers at key support level
TransEnterix Inc. (TRXC) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TRXC ended Wednesday at 1.64 gaining $0.06 (3.8%), notably outperforming the S&P 500 (0.19%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TRXC as at Jan 15, 2020):
Wednesday's trading range has been $0.23 (13.29%), that's slightly above the last trading month's daily average range of $0.20. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TRXC.
After trading down to 1.51 earlier during the day, the market bounced off the key technical support level at 1.56 (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 December 26, 2019, TRXC actually lost -5.03% on the following trading day.
Although the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the nearby swing low at 1.40 where further sell stops could get activated. 2019's low at 1.35 is within reach and we might see further downside momentum should TransEnterix break out beyond.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for TransEnterix. Out of 207 times, TRXC closed lower 48.79% 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 three trading days, showing a win rate of 58.94% with an average market move of -0.75%.