TSN closes within prior day's range
Tyson Foods Inc. (TSN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TSN finished Wednesday at 65.21 losing $0.04 (-0.06%), but still slightly outperforming the S&P 500 (-0.46%). Trading $1.10 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TSN as at Sep 16, 2020):
Wednesday's trading range has been $1.40 (2.14%), that's slightly below the last trading month's daily average range of $1.41. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TSN.
Regardless of a strong opening Tyson Foods closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on September 3rd, TSN actually gained 1.27% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Shooting Star.
Prices are trading close to the key technical support level at 64.79 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying might move prices higher should the market test August's nearby high at 66.52.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Tyson Foods. Out of 51 times, TSN closed higher 64.71% of the time on the next trading day after the market condition occurred.