TSN closes within previous day's range after lackluster session
Tyson Foods Inc. (TSN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TSN finished the week 1.68% higher at 59.19 after edging lower $0.06 (-0.1%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial 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 May 22, 2020):
Friday's trading range has been $1.01 (1.69%), that's far below the last trading month's daily average range of $2.33. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TSN. Prices continued to consolidate within a tight trading range between 58.42 and 60.98 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on March 31st, TSN lost -4.37% on the following trading day.
The share found buyers again today around 58.74 for the third trading day in a row after having found demand at 58.42 in the prior session and at 58.79 two days ago.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 60.98 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 58.42 where further sell stops could get triggered. As prices are trading close to May's high at 61.87, upside momentum might speed up should Tyson Foods mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Tyson Foods. Out of 295 times, TSN closed higher 55.25% 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 60.34% with an average market move of 0.73%.