TSN still stuck within tight trading range
Tyson Foods Inc. (TSN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TSN finished the month -2.82% lower at 59.71 after edging higher $0.45 (0.76%) today, underperforming the S&P 500 (1.54%). Closing above Monday's high at 59.46, the market confirmed its breakout through the previous session high after trading up to $0.89 above it intraday.
Daily Candlestick Chart (TSN as at Jun 30, 2020):
Tuesday's trading range has been $1.56 (2.64%), that's far below the last trading month's daily average range of $2.60. Weekly volatility is also lower, being way 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 57.97 and 60.58 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on May 26th, TSN actually gained 1.80% on the following trading day.
Prices are trading close to the key technical support level at 58.36 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 57.97 where further sell stops might get activated. As prices are trading close to June's low at 57.75, downside momentum could accelerate should Tyson Foods mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Tyson Foods. Out of 316 times, TSN closed higher 57.91% 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 56.96% with an average market move of 0.70%.