TXT finds buyers again around 34.18
Textron Inc. (TXT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
TXT finished the month 6.17% higher at 34.94 after losing $0.20 (-0.57%) today on high volume, significantly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TXT as at Jul 31, 2020):
Friday's trading range has been $1.53 (4.28%), that's above the last trading month's daily average range of $1.19. 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 TXT.
One bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move lower than 34.30 in the prior session, Textron found buyers again around the same price level today at 34.18. The last time this happened on Wednesday, TXT gained 2.54% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 33.67 where further sell stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Textron. Out of 682 times, TXT closed higher 53.67% 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 53.52% with an average market move of 0.81%.