TSN runs into sellers around 65.83 for the third day in a row
Tyson Foods Inc. (TSN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
TSN ended Thursday at 61.23 losing $1.96 (-3.1%), notably underperforming the S&P 500 (6.24%). Trading $2.36 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, TSN actually gained 5.33% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TSN as at Mar 26, 2020):
Thursday's trading range has been $5.31 (8.37%), that's slightly above the last trading month's daily average range of $4.90. 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 TSN. Prices continued to consolidate within a tight trading range between 57.71 and 65.83 where it has been caught now for the last three trading days.
Unable to break through the key technical resistance level at 65.72 (R1), Tyson Foods closed below it after spiking up to 65.83 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. The share ran into sellers again today around 65.83 for the third trading day in a row after having found sellers at 65.67 in the prior session and at 64.70 two days ago.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Tyson Foods. Out of 125 times, TSN closed higher 55.20% 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 59.20% with an average market move of 0.78%.