TSCO closes within previous day's range after lackluster session
Tractor Supply Company (TSCO) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TSCO finished the week 1.68% higher at 98.17 after losing $0.09 (-0.09%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.48 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TSCO as at Feb 14, 2020):
Friday's trading range has been $1.02 (1.04%), that's below the last trading month's daily average range of $2.55. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for TSCO. Prices continued to consolidate within a tight trading range between 96.16 and 99.13 where it has been caught now for the whole last trading week.
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, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on January 16th, TSCO gained 1.87% on the following trading day.
Unable to break through the key technical resistance level at 98.56 (R1), the market closed below it after spiking up to 98.60 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. Tractor Supply found buyers again today around 97.58 for the third trading day in a row after having found demand at 97.33 in the prior session and at 97.43 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 99.13 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 97.33 where further sell stops might get activated. Trading close to December's high at 99.37 we could see further upside momentum if potential buy stops at the level get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Tractor Supply. Out of 231 times, TSCO closed higher 55.41% 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 57.58% with an average market move of 1.17%.