TS drops to lowest close since June 25th
Tenaris S.A. American Depositary Shares (TS) Technical Analysis Report for Jul 17, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, TS ended Wednesday at 25.63 tanking $0.76 (-2.88%), significantly underperforming the S&P 500 (-0.65%). This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on June 12th, TS actually gained 2.98% on the following trading day. Today's close at 25.63 marks the lowest recorded closing price since June 25th. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (TS as at Jul 17, 2019):
Wednesday's trading range has been $0.59 (2.25%), that's far above the last trading month's daily average range of $0.45. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TS.
Two candlestick patterns are matching today's price action, the Bearish Closing Marubozu and the Black Candle which are both known as bearish patterns.
The stock closed back below the 50-day moving average at 25.85 for the first time since July 2nd.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Tenaris S. A.. Out of 351 times, TS closed higher 57.83% 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 53.28% with an average market move of 0.66%.