TEL Signals BUY On Daily Chart

The Technical Analysis

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Published: March 16, 2022 at 10:28 PM EST

On March 16, 2022, TE Connectivity Limited stock (TEL) achieved a BUY signal on 4 of our proprietary algorithms indicating near-term upward movement for TEL. Based on historically similar occurrences, the likelihood of this near-term movement is very high. Although this analysis may be technical, it clearly lays out targets for pending price action for TEL. The chart of all potential movement is at the bottom of this article.

Multi-Time Frame Algorithm

This algorithm determines when price direction reverses at the same time on the Daily and 3 Hour chart. There are two buy and sell points for this algorithm. An aggressive signal occurs when price direction changes on both charts at the same time. A conservative signal occurs after the second bar confirms price direction has changed. Aggressive signals can happen without conservative signals. Conservative signals only occur when an aggressive signal also occurs at the same time. The signals appear on other time frame charts in the same position a cross-over occurs on the 3 Hour and Daily charts.

Multi-Time Frame Aggressive BUY - TEL Daily Chart Accuracy

This algorithm accurately identifies BUY points for TEL on daily charts 94.03% of the time it signals. A successful signal means the equity price moves up at least 1% over the next 35 Daily bars. When the algorithm properly performs, success is seen at least 1 trading bars after the signal closing price with a median max gain occurring around 22 trading bars after the signal bar. Successful signals see average reversals of 8.952% from the signal bar closing price and median reversals of 6.997%. The equity reverses greater than two percent 82.09% of the time, greater than five percent 64.179% of the time, and moves beyond ten percent 28.358% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 83.582% of the time. In these instances, the reversals do not obey the signal and begin sizable upward movement for an additional 2 to 8 bars after the triggering signal occurs. This delay can see the equity decline 0.958% to 4.256% beyond the signal closing price of 131.36.

Analysis Based on This Section

Based on the signal closing price of 131.36, the target price is between 136.71 and 147.12 over the next 12 to 30 bars after the signal. However, the equity may first decline toward a price in the range of 125.77 to 130.1 over the first 2 to 8 trading bars.

SAG Gauge

This algorithm determines overbought and oversold conditions based on separate conditions all occurring at the same time. There are two buy and sell points for this algorithm. An aggressive signal occurs after a top or bottom is confirmed when technically reading the equity's chart. A conservative signal occurs after a 2-bar confirmation takes place. Aggressive signals can happen without conservative signals. Conservative signals only occur when an aggressive signal also occurs at the same time.

SAG Gauge Aggressive BUY - TEL Daily Chart Accuracy

This algorithm accurately identifies BUY points for TEL on daily charts 95.918% of the time it signals. A successful signal means the equity price moves up at least 1% over the next 35 Daily bars. When the algorithm properly performs, success is seen at least 1 trading bars after the signal closing price with a median max gain occurring around 26 trading bars after the signal bar. Successful signals see average reversals of 14.361% from the signal bar closing price and median reversals of 7.103%. The equity reverses greater than two percent 85.714% of the time, greater than five percent 73.469% of the time, and moves beyond ten percent 38.776% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 87.755% of the time. In these instances, the reversals do not obey the signal and begin sizable upward movement for an additional 1 to 8 bars after the triggering signal occurs. This delay can see the equity decline 1.376% to 5.101% beyond the signal closing price of 131.36.

Analysis Based on This Section

Based on the signal closing price of 131.36, the target price is between 138.24 and 149.63 over the next 12 to 33 bars after the signal. However, the equity may first decline toward a price in the range of 124.66 to 129.55 over the first 1 to 8 trading bars.

SAG Gauge Conservative BUY - TEL Daily Chart Accuracy

This algorithm accurately identifies BUY points for TEL on daily charts 96.97% of the time it signals. A successful signal means the equity price moves up at least 1% over the next 35 Daily bars. When the algorithm properly performs, success is seen at least 1 trading bars after the signal closing price with a median max gain occurring around 24 trading bars after the signal bar. Successful signals see average reversals of 15.329% from the signal bar closing price and median reversals of 8.081%. The equity reverses greater than two percent 87.879% of the time, greater than five percent 78.788% of the time, and moves beyond ten percent 42.424% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 87.879% of the time. In these instances, the reversals do not obey the signal and begin sizable upward movement for an additional 1 to 8 bars after the triggering signal occurs. This delay can see the equity decline 1.335% to 5.08% beyond the signal closing price of 131.36.

Analysis Based on This Section

Based on the signal closing price of 131.36, the target price is between 139.05 and 149.21 over the next 10 to 33 bars after the signal. However, the equity may first decline toward a price in the range of 124.69 to 129.61 over the first 1 to 8 trading bars.

Moving Average Convergence Divergence Extrema

This algorithm follows the common moving average convergence divergence (MACD). It signals a BUY when the largest negative divergences begin to reduce. It likewise signals a SELL when the largest positive divergences begin to reduce as well. There are additional factors required for an actual signal to remove false signals.

Moving Average Convergence Divergence Extrema BUY - TEL Daily Chart Accuracy

This algorithm accurately identifies BUY points for TEL on daily charts 91.011% of the time it signals. A successful signal means the equity price moves up at least 1% over the next 35 Daily bars. When the algorithm properly performs, success is seen at least 1 trading bars after the signal closing price with a median max gain occurring around 22 trading bars after the signal bar. Successful signals see average reversals of 11.973% from the signal bar closing price and median reversals of 9.082%. The equity reverses greater than two percent 85.393% of the time, greater than five percent 71.91% of the time, and moves beyond ten percent 43.82% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 79.775% of the time. In these instances, the reversals do not obey the signal and begin sizable upward movement for an additional 1 to 7 bars after the triggering signal occurs. This delay can see the equity decline 1.184% to 4.3% beyond the signal closing price of 131.36.

Analysis Based on This Section

Based on the signal closing price of 131.36, the target price is between 138.45 and 149.69 over the next 11 to 33 bars after the signal. However, the equity may first decline toward a price in the range of 125.71 to 129.8 over the first 1 to 7 trading bars.

Summarization of Data

Based on all of the historical datapoints, this analysis has settled on the most likely courses of movement. The red boxes in the image below indicate the likely location of a decline if the signal is not immediately accurate. The green boxes likely hold the extent of signal accuracy. The larger boxes contain all movements aligned with historical data. The smaller box is comprised of the likely half of the median historical data. In this instance, half of the historical data shows the stock may first move down between 125.20 and 129.705. This is the small red box. Likewise, half of the historical target end points finish in the smaller green box. In this instance, the target top is likely between 138.345 and 149.42.

Chart displaying Reversals and Targets for TEL

View this interactive chart on TradingView to see where the stock currently is for this idea.

DISCLOSURE: The algorithms and historical accuracy percentages mentioned in these articles are for reference only. Anything can happen in the future when it comes to market movement. Historical price action is not always indicative of future movement. Just because the signals may have a high degree of accuracy, they can always fail. Traders assume all risk to their assets when investing in short or long-term opportunities.

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