TSN runs into sellers again around 61.79
Tyson Foods Inc. (TSN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TSN finished the month 2.91% higher at 61.45 after losing $0.12 (-0.19%) today, underperforming the S&P 500 (0.77%) ahead of Monday's earnings report. Trading up to $0.78 lower after the open, Tyson Foods 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.
Daily Candlestick Chart (TSN as at Jul 31, 2020):
TSN is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $0.9 per share. The company's last earnings report was released on May 4, 2020, when Tyson Foods Inc. reported earnings of $0.77 per share missing market expectations by -36.4%.
Friday's trading range has been $1.18 (1.92%), that's slightly below the last trading month's daily average range of $1.44. 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. Prices continued to consolidate within a tight trading range between 59.96 and 62.00 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 61.66 (R1), the stock closed below it after spiking up to 61.79 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on May 18th, TSN lost -4.06% on the following trading day. After having been unable to move above 61.64 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 61.79.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 62.00 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 60.30 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day before Earnings Report" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Tyson Foods. Out of 30 times, TSN closed higher 66.67% 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 70.00% with an average market move of 3.59%.