TUP climbs to highest close since April 30th
Tupperware Brands Corporation (TUP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TUP ended the week 17.9% higher at 3.03 after edging higher $0.01 (0.33%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 3.03 marks the highest recorded closing price since April 30th. 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 (TUP as at May 22, 2020):
Friday's trading range has been $0.15 (4.93%), that's far below the last trading month's daily average range of $0.33. 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 TUP.
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, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After having been unable to move above 3.10 in the prior session, Tupperware Brands ran into sellers again around the same price level today, failing to move higher than 3.08. The last time this happened on May 15th, TUP actually gained 8.56% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 3.10 where further buy stops might get activated. Further buying could move prices higher should the market test April's nearby high at 3.40.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Tupperware Brands. Out of 166 times, TUP closed lower 59.64% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.22% with an average market move of -1.36%.