TSN unable to break through key resistance level
Tyson Foods Inc. (TSN) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
TSN ended the week -2.05% lower at 60.29 after edging higher $0.06 (0.1%) today on low volume, notably underperforming the S&P 500 (1.42%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TSN as at Oct 12, 2018):
Friday's trading range has been $1.00 (1.66%), that's below the last trading month's daily average range of $1.22. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TSN.
Three candlestick patterns are matching today's price action, the Homing Pigeon and the Takuri Line which are both known as bullish patterns and one bearish pattern, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 60.54 (R1), the market closed below it after spiking up to 60.59 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Monday, TSN lost -0.71% on the following trading day. After having been unable to move lower than 59.66 in the previous session, the stock found buyers again around the same price level today at 59.59.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to October's low at 58.54, downside momentum could accelerate should the share mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Homing Pigeon" stand out. Its common bullish interpretation has been confirmed for Tyson Foods. Out of 23 times, TSN closed higher 69.57% 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 52.17% with an average market move of 1.20%.