TTWO breaks below Tuesday's low
Take-Two Interactive Software Inc. (TTWO) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
TTWO finished Wednesday at 157.07 losing $3.52 (-2.19%), underperforming the Nasdaq 100 (-1.67%). Closing below Tuesday's low at 157.32, the share confirmed its breakout through the prior session low after trading up to $0.82 below it intraday.
Daily Candlestick Chart (TTWO as at Sep 16, 2020):
Wednesday's trading range has been $6.48 (4.03%), that's far above the last trading month's daily average range of $4.68. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TTWO.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 11th, TTWO actually gained 1.92% on the following trading day.
Prices are trading close to the key technical support level at 155.99 (S1). After having been unable to move lower than 157.32 in the previous session, the market found buyers again around the same price level today at 156.50.
While the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Take-Two Interactive. Out of 450 times, TTWO closed higher 59.56% 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 62.89% with an average market move of 1.71%.