TSN closes higher for the 2nd day in a row
Tyson Foods Inc. (TSN) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TSN ended the week 4.84% higher at 57.83 after edging higher $0.27 (0.47%) today on low volume, slightly outperforming the S&P 500 (-0.01%). Today's close at 57.83 marks the highest recorded closing price since December 6, 2018. Trading up to $0.38 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (TSN as at Jan 11, 2019):
Friday's trading range has been $0.97 (1.68%), that's far below the last trading month's daily average range of $1.59. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TSN.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 57.36 earlier during the day, the stock bounced off the key technical support level at 57.62 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on December 28, 2018, TSN gained 2.03% on the following trading day.
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the five 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 Tyson Foods. Out of 418 times, TSN closed higher 60.05% 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 60.05% with an average market move of 1.07%.