TSE rises to highest close since April 29th
Trinseo S.A. (TSE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
TSE finished the week 18.1% higher at 20.55 after gaining $1.54 (8.1%) today on high volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 20.55 marks the highest recorded closing price since April 29th. Closing above Thursday's high at 19.42, the stock confirmed its breakout through the prior session high after trading up to $2.07 above it intraday.
Daily Candlestick Chart (TSE as at May 22, 2020):
Friday's trading range has been $3.07 (16.03%), that's far above the last trading month's daily average range of $1.36. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TSE.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar.
Buyers managed to take out the key technical resistance level at 19.68 (now S1), which is likely to act as support going forward. The last time this happened on March 13th, TSE actually lost -10.02% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to March's high at 23.18 we might see further upside momentum if potential buy stops at the level get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Trinseo S. A.. Out of 163 times, TSE closed higher 53.37% 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 54.60% with an average market move of 1.11%.