TSN stuck within tight trading range
Tyson Foods Inc. (TSN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
TSN ended the week 0.2% higher at 80.51 after losing $0.67 (-0.83%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. 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 Feb 14, 2020):
Friday's trading range has been $1.39 (1.71%), that's below the last trading month's daily average range of $1.93. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TSN. Prices continued to consolidate within a tight trading range between 79.71 and 81.70 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Wednesday, TSN actually gained 1.02% on the following trading day.
Prices are trading close to the key technical support level at 79.71 (S1). After having been unable to move above 81.53 in the previous session, Tyson Foods ran into sellers again around the same price level today, missing to move higher than 81.70.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 79.71 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Tyson Foods. Out of 526 times, TSN closed higher 54.94% 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 59.13% with an average market move of 0.93%.