TXT finds buyers around 38.83 for the third day in a row
Textron Inc. (TXT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
TXT finished Wednesday at 39.61 gaining $0.54 (1.38%) on high volume, strongly outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 39.59, the market confirmed its breakout through the previous session high after trading up to $0.53 above it intraday.
Daily Candlestick Chart (TXT as at Sep 16, 2020):
Wednesday's trading range has been $1.29 (3.3%), that's above the last trading month's daily average range of $1.01. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TXT.
After trading down to 38.83 earlier during the day, the stock bounced off the key technical support level at 38.89 (S1). The failure to close below the support might increase that levels importance as support going forward. The share found buyers again today around 38.83 for the third trading day in a row after having found demand at 38.77 in the prior session and at 38.66 two days ago. The last time this happened on August 20th, TXT gained 0.48% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to September's high at 41.08, upside momentum could speed up should Textron mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Textron. Out of 299 times, TXT closed higher 51.17% 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 56.52% with an average market move of 0.97%.