TXT ends the day on a bullish note closing near the high of the day
Textron Inc. (TXT) Technical Analysis Report for Apr 16, 2018 | by Techniquant Editorial Team
TXT ended Monday at 59.43 gaining $0.91 (1.56%). Today's closing price of 59.43 marks the highest close since April 5th. Trading up to $0.22 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 failed to decisively move beyond the previous day's trading range in a lackluster session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (TXT as at Apr 16, 2018):
Monday's trading range was $0.65 (1.1%), that's far below last trading month's daily average range of $1.23. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly below average. Prices continued to consolidate within a tight trading range between 57.78 and 59.54 which it has been in now for the last trading week.
After moving lower in the prior session, Textron Inc. managed to close higher but below the previous day's open, forming a bullish Harami Candle.
After trading as low as 58.89 during the day, the share bounced off the key support level at 58.93. The failure to close below the support could increase that levels importance as support going forward. Prices are trading close to the key resistance level at 59.85. The stock ran into sellers again today around 59.54 for the third trading day in a row after having found sellers at 59.52 in the prior session and at 59.45 two days ago.
TXT shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish. The market managed to break above the 50-day moving average at 58.56 today for the first time since April 11th.
Buying might accelerate should prices move above the nearby swing high at 59.72 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 58.21 where further sell stops could get triggered. Trading close to February's high at 61.43 we might see further upside momentum if potential buy stops at the level get activated.