TXRH closes above its opening price after recovering from early selling pressure
Texas Roadhouse Inc. (TXRH) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
TXRH ended the month 6.89% higher at 56.19 after gaining $0.02 (0.04%) today, underperforming the S&P 500 (0.77%). Trading up to $0.99 lower after the open, the share 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 failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TXRH as at Jul 31, 2020):
Friday's trading range has been $1.87 (3.33%), that's slightly below the last trading month's daily average range of $2.08. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TXRH.
Three candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 51.89. The last time this happened on June 8th, TXRH lost -6.28% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Its common bearish interpretation has been confirmed for Texas Roadhouse. Out of 93 times, TXRH closed lower 51.61% 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 51.61% with an average market move of -0.35%.