TXT closes above its opening price after recovering from early selling pressure
Textron Inc. (TXT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
TXT finished the week -5.26% lower at 48.08 after gaining $0.08 (0.17%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.38 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 30th, TXT actually lost -2.13% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TXT as at Feb 14, 2020):
Friday's trading range has been $0.48 (1.0%), that's below the last trading month's daily average range of $1.27. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for TXT.
After moving lower in the previous session, Textron managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, three candlestick patterns are matching today's price action, the Southern Doji and the Takuri Line which are both known as bullish patterns and one neutral pattern, the Doji.
After trading as low as 47.68 during the day, the share found support at the 200-day moving average at 47.88.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Textron. Out of 41 times, TXT closed higher 70.73% 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 58.54% with an average market move of 1.33%.