TSCO breaks below Thursday's low
Tractor Supply Company (TSCO) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TSCO finished the month 8.31% higher at 142.74 after losing $0.68 (-0.47%) today, significantly underperforming the S&P 500 (0.77%). Closing below Thursday's low at 142.80, the market confirmed its breakout through the previous session low after trading up to $1.98 below it intraday.
Daily Candlestick Chart (TSCO as at Jul 31, 2020):
Friday's trading range has been $3.88 (2.68%), that's slightly below the last trading month's daily average range of $3.89. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TSCO.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 140.82 during the day, the stock found support at the 20-day moving average at 141.10. The last time this happened on June 12th, TSCO gained 2.55% on the following trading day. After having been unable to move above 145.06 in the prior session, Tractor Supply ran into sellers again around the same price level today, missing to move higher than 144.70.
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 146.50 where further buy stops might get activated.
Among the seven 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 Tractor Supply. Out of 437 times, TSCO closed higher 59.27% 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 57.21% with an average market move of 0.71%.