TXT closes above its opening price after recovering from early selling pressure
Textron Inc. (TXT) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
TXT ended the week 1.33% higher at 51.78 after flat today on high volume, slightly underperforming the S&P 500 (0.5%). Trading up to $0.29 lower after the open, the market 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 in a lackluster session.
Daily Candlestick Chart (TXT as at Mar 15, 2019):
Friday's trading range has been $0.62 (1.2%), that's below the last trading month's daily average range of $0.83. 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 TXT.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 51.44 earlier during the day, the stock bounced off the key technical support level at 51.56 (S1). The failure to close below the support might increase that levels importance as support going forward. The share closed back below the 50-day moving average at 51.85 for the first time since March 8th. When this moving average was crossed below the last time on March 8th, TXT actually gained 1.92% on the following trading day. After having been unable to move lower than 51.45 in the prior session, Textron found buyers again around the same price level today at 51.44.
TXT shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Textron. Out of 100 times, TXT closed higher 55.00% 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 64.00% with an average market move of 1.45%.